An economic analysis of Mexico's dairy, livestock, and poultry sector : implications for feed demand

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Over the last several decades, Mexico has experienced annual rates of growth in both population and per capita real incomes in excess of three percent. These increases in population and incomes, changing dietary habits, and government policymakers attempts to increase the nutritional levels of the Mexican populace have all been translated into increases in the demand for higher protein food commodities. The principal source of this higher protein food is the Mexican dairy, livestock, and poultry sector. The principal objectives of this study were: 1) to identify and analyze the sources of growth of the Mexican livestock and poultry subsectors and major structural and technical constraints to its further development, and 2) to determine both the implications that these factors have had on aggregate feed demand, as well as Mexico's ability to satisfy domestic feed demand requirements. The study utilized data from a variety of secondary data sources. Factors impacting demand, such as demographic and income dynamics were discussed and analyzed. Within the dairy, livestock, and poultry sector, major changes and patterns in production, trade, supply, and prices were identified. To determine the ability of Mexico to supply major feed ingredients--feed grains and oilseeds--trends and patterns in grain and oilseed consumption, production, trade, and prices were also overviewed. The influence of government policies and programs and major marketing institutions on the supply of, and the demand for, dairy, livestock, poultry, and crop sector output was also analyzed. Supplying the domestic market with animal proteins has resulted in substantial increases in livestock and poultry populations and industry productivity. A major factor in these increases has been the movement of various subsectors--notably poultry, swine, and dairy--towards more intensive, confined animal feeding systems. Government intervention was also shown to have had a major impact on the growth and development of the sector in general and the egg and dairy industries in particular. Mexico's crop sector also reflects the growing importance of major livestock and poultry industries. Substantial growth has occured in domestic output of major animal feed ingredients--grain sorghum, soybeans, and safflower. However, although impressive, these gains have been insufficient to supply domestic demand. As a result, Mexico has turned increasingly toward international markets to satisfy domestic feed input requirements. These developments have major implications for United States' agricultural exports. In 1981, Mexico was the third largest foreign market for U.S. agricultural products. Mexico's 1981 imports of U.S. grain sorghum and soybean and soybean meal, for example, totaled U.S. $330 million and U.S. $230 million, respectively.

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M.S.

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License.