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WPGA Conference 2017 The Pecan Industry in Chihuahua, Mexico: Challenges and Successes Dr. Julio López-Díaz Universidad Autónoma de Chihuahua [email protected] Dr. Esteban Herrera NMSU Professor Emeritus

The Pecan Industry in Chihuahua Mexico: Challenges and ...aces.nmsu.edu/ces/pecans/documents/9 Lopez Diaz.pdf · The Pecan Industry in Chihuahua, Mexico: Challenges and Successes…And

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WPGA Conference 2017

The Pecan Industry in Chihuahua, Mexico: Challenges and Successes

Dr. Julio López-DíazUniversidad Autónoma de Chihuahua

[email protected]

Dr. Esteban Herrera NMSU Professor Emeritus

Acknowledgements

• M.S. Víctor Esparza

NMSU alumnus & President of the Mexican Pecan System-

Product Committee (COMENUEZ)

2

Today’s Talk• PecanIndustry´s Overview:

o National andChihuahuaState Levels

• Topics:o Productiono Internationaltradeo AcreageoMarket andmarketingo Tendencieso Challenges andSuccesses

3

Main Pecan-Producing States in Mexico

SonoraChihuahua

Durango

Coahuila

NL

Source:SIAP-SAGARPA

4

Mexican Pecan Growers: How are they organized?

National Level

State Level

LocalLevelRegionalAssociations

5

Mexico’s Pecan Production (MT)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

125,758 122,714

1,000 lbs

2014– 277,246

2015 – 270,535

Source:SIAP-SAGARPA

MT

6

Production by State

State Production 2015 (MT)

Chihuahua 79,934Sonora 15,028Coahuila 12,509Durango 7,143Nuevo León 3,354Others 4,746

122,714

65%12%

10%

6%3%4% Chihuahua

Sonora

Coahuila

Durango

NuevoLeón

Others

Source:SIAP-SAGARPA

7

Pecan Hectares in Mexico

0

20,000

40,000

60,000

80,000

100,000

120,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

50,47851,82351,622

63,69665,68568,383

74,21277,58280,048

84,50988,055

92,21898,071

104,371108,012

112,622

2000- 2015

Year 2015112,622Has

Source:SIAP-SAGARPASup.Sembrada(Has)

8

MX´s Production and Hectares

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2000- 2015

Year 2015

122,714 MT

112,622Has

Source:SIAP-SAGARPASup.Sembrada(Has) Producción(Ton)

9

New Plantings in Mexico

Avg. Increase per Year4,267 Has

Estimated tobe5,000– 7,000Has

2,698

5,829

3,370

2,466

4,461

3,546

4,163

5,8536,300

3,641

4,611

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000He

ctares

Source:SIAP-SAGARPA2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

10

International Trade Mexico-USA

-

20,000

40,000

60,000

80,000

100,000

120,000

21,69622,04520,87024,50623,98326,187 29,087

87,66291,231

67,45670,474

79,750

102,118

95,384Metric

Tons

IMPORTACIONES

EXPORTACIONES

Source:SIAVI

ImportsExports

=78%ofTotalProductionMT

MT

2009 2010 2011 2012 2013 2014 2015

11

Exports from Mexico to USA

-

20,000

40,000

60,000

80,000

100,000

120,000

2009 2010 2011 2012 2013 2014 2015SINCASCARA 46,646 71,777 42,868 45,147 56,213 69,567 60,480CONCASCARA 41,016 19,454 24,587 25,327 23,537 32,551 34,904

MetricTons

Total 201595, 384 MT

78% of Mexico’sProduction

Source:SIAVIandCOMENUEZ

In-Shell

Shelled

12

Mexican Exports to China

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

326620

6,932

1,391

3,316 3,141 3,337

4,092

5,579

Metric

Tons

MT=4.54%ofTotalProduction

13

Mexico and China► Sonora State: currently the biggest

exporter to China (in-shell nuts).

► Smaller trade operations fromother Mexican states. Chihuahuacould be in the future a majorplayer in exporting to China. 2016

China in Mexico:• 28 Buyers representing 14 Companies• Import Tax lowered: 25 to 10%

http://www.sagarpa.gob.mx/Delegaciones/distritofederal/boletines/Paginas/JAC0236-29.aspx

14

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2011 2012 2013 2014 2015

45,773

64,637

49,775 49,48056,417

Tons

Source:SIAVI

Apparent ConsumptionProduction

plus Importsminus Exports

Avg.Apparent Consumption53,216MT

2007 2008 2009 2010

Pecan Apparent Consumption in Mexico

15

Per Capita Consumption in Mexico(2014)

Source:COMENUEZ

gr

Pecan Almonds Macadamia Pine nut Pistachio Hazelnuts Chestnuts

Year 2014

26,132 MT

16

Pecan Industry in Chihuahua

17

Pecan Production in Chihuahua

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

66,302

79,934

Metric

Tons

CHIHUAHUA

COAHUILA

SONORA

Source:SIAP-SAGARPA

MT

18

Pecan-producing RegionsYear 2014

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,00016,025

10,453

4,6034,3384,1883,8983,7183,3413,1172,8282,8652,3972,189

MetricTons

Source:COMENUEZ

19

Pecan Production Forecasting

Source:COMENUEZ

Met

ricTo

ns

§ Chihuahua could reach aproduction as high as150,000 MT by 2025.

20

Chih’s Pecan Hectares

38,44540,590

42,68544,656

47,10348,53551,38953,029

55,119

60,25064,049 66,302

16,242

11,586

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

CHIHUAHUA

COAHUILA

SONORA

For 2016estimated

70% production30% development

Source:SIAP-SAGARPA

AVG. Increase per Year2,532 Hasestimated

3,000 – 5,000 Has

Yr 201568, 823 Has

21

Price-per-Point in Chihuahua(2001 – 2016)

1.43

2.05 2.20

3.803.38

3.15 3.102.75 2.84

4.955.19

3.043.35

3.594.08

5.03

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Dollars

Year

Price-per-Point• Source: COMENUEZ and Pecan Growers

• Estimated Average Price

• Price Fluctuation 2016 - 2017:4.20 – 5.65 USD

• Feb 17th‘s Price : $ 4.20, Pecans 54% Meat

22

Price per Kg in Chihuahua(2001 – 2016)

17.1525.30

30.01

54.92

44.0438.9140.00

48.4744.45

70.20

84.82

46.1550.36

60.59

82.00

123.14

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Price(Pesos/Kg)

23

Exchange Rate(2001 – 2016)

9.57 10.1811.15 11.28

10.51 10.85 10.83

13.9412.96 12.33

13.55 13.09 12.9413.95

16.54

20.05

0

5

10

15

20

25

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ExchangeRate (Pesos/USD)

24

Challenges and Successes

25

Success 1► Mexican Pecan growers have developed good pecan

management knowledge and skills through short courses,conferences, talks, publications, etc.

26

Success 2► Good growers’ organizations.

27

Success 3► Plenty of orchard management information available:

magazines, Facebook, webpages, etc.

28

Challenge 1► Improving Pecan Growers-Government team work.

29

Challenge 2►Need of accurate, reliable data of pecan industry.

30

Challenge 3►New Markets: Asia and Europe.

31

Challenge 3►Participating in Food & Trade Fairs.

32

Challenge 4►Consolidation of domestic market.

Current pecan pricesrepresent the mainfactor to increasingconsumption.

33

U.S. International Trade in goods and services

MEXICO“In 2015, U.S. exports of goods and services to Mexico were $267.3 billion, down 1.4%from 2014, and imports from Mexico were $325.3 billion, up 0.7% from 2014. As a result,the trade deficit with Mexico increased to $57.9 billion.”

“In 2015, exports to Mexico accounted for 11.8% of total U.S. exports, and imports fromMexico accounted for 11.8% of total U.S. imports. Exports were led by capital goods(excluding automotive), which accounted for 31.2% of U.S. exports to Mexico, andimports were led by automotive vehicles, parts, and engines, which accounted for 32.7%of U.S. imports from Mexico.”

“Who owns the automotive companies?”34

U.S. International Trade in goods and services

“Consumer Products and Autos Drive the U.S. Trade Deficit”

MEXICO

35https://www.bea.gov/international/factsheet/factsheet.cfm?Area=213

U.S. International Trade in goods and servicesDirect Investment of Multinational Enterprises in Mexico

36https://www.bea.gov/international/factsheet/factsheet.cfm?Area=213

U.S. International Trade in goods and servicesActivities of Multinational Enterprises in Mexico

Mexican minimum wage 2017:$80pesosperday or

$4dollars

37https://www.bea.gov/international/factsheet/factsheet.cfm?Area=213

U.S. Trade in goods with…(Millions of U.S. dollars)

ChinaDeficit:5.49moretimesthanMexico

Exports Imports Balance

Year2016

China 115,775.1 462,813.0 - 347,037.9Japan 63,264.3 132,201.8 - 68,937.6Mexico 230,959.1 294,151.0 - 63,191.9

https://www.census.gov/foreign-trade/balance/index.html Source:

38

Challenge 5►USA New Administration Policies: NAFTA?

39

Challenge 5►USA New Administration Policies: NAFTA?

40

Challenge 5►USA New Administration Policies: NAFTA?

41

WPGA Conference2017

The Pecan Industry in Chihuahua, Mexico: Challenges and Successes…And maybe fears?

Thank you!Dr. Julio López-Díaz

Universidad Autónoma de [email protected]

Dr. Esteban Herrera NMSU Professor Emeritus