Required Report - public distribution

**Date:** 9/29/2006

**GAIN Report Number:** MX6311

**Mexico**

**Exporter Guide**

**Report**

**2006**

**Approved by:**

![](media/image1.wmf)Christine Sloop

Mexico ATO

**Prepared by:**

Valerie Brown-Jones, Carlos Zertuche, Lourdes Guzman & Jaime Lopez

**Report Highlights:**

The Mexico Exporter\'s Guide is an excellent resource for U.S. exporters
interested in doing business in this dynamic market. This marks the
third straight year of record export growth for U.S. agricultural sales
to Mexico. In 2005, Mexico surpassed Japan as the United States\' second
largest agricultural export market. Mexico is a growth market for U.S.
exporters and this guide offers information, practical tips as well as,
contacts that will assist in decision-making and business negotiations.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Mexico ATO \[MX2\]

\[MX\]

Table of Contents

[Section I. Market Overview 4](#section-i.-market-overview)

[Advantages and Challenges for US Exporters in Mexico
5](#advantages-and-challenges-for-us-exporters-in-mexico)

[Section II. Exporter Business Tips
5](#section-ii.-exporter-business-tips)

[**Section III. Market Sector Structure and Trends
7**](#section-iii.-market-sector-structure-and-trends)

[Number of ANTAD Associates 8](#number-of-antad-associates)

[Section IV. Best High value Product Prospects
13](#section-iv.-best-high-value-product-prospects)

[**Section V. Key Contacts 14**](#section-v.-key-contacts)

[U.S. Agricultural Trade Office, Mexico City
14](#u.s.-agricultural-trade-office-mexico-city)

[U.S. Agricultural Trade Office, Monterrey
14](#u.s.-agricultural-trade-office-monterrey)

[U.S. Cooperators in Mexico 14](#u.s.-cooperators-in-mexico)

[Appendix - Statistics 18](#appendix-statistics)

Welcome to Mexico, the United States' second most important trading
partner in the world. The USDA's Agricultural Trade Offices (ATOs) in
Mexico provide "One Stop Shopping" for U.S. companies interested in
learning about export opportunities in Mexico. The mission of the ATOs
is to assist U.S. companies in market development and promotion of US
food and agricultural products in Mexico. The ATOs, located in Mexico
City and Monterrey, offer U.S. food and agricultural product companies a
wide variety of trade services geared to understanding, promoting and
selling in this dynamic marketplace.

To support your trade endeavors, we have prepared this Exporter's Guide.
The Guide, which is divided in to five sections, offers both new
exporters to the market and those who have experience in Mexico, a
snapshot of what you need to know to achieve success. The guide is
organized into the following parts:

Market Overview:

The Market Overview is a summary of the overall business climate, as
well as, a general perspective of the market opportunities for
high-value consumer foods/beverages as well as edible fishery products.

Exporter Business Tips:

This section will provide you with practical information on business
practices and what to expect when doing business in Mexico.

Market Sector Structure and Trends:

The market sector structure and trends is a qualitative assessment of
the market opportunities for consumer-oriented foods/beverages and
edible fishery products in the food retail, HRI (hotel, restaurant, and
institutional) food service and food processing sectors.

Best Consumer Oriented Product Prospects:

In this section you can find some of the top import prospects in Mexico.

Key Contacts:

Key Contacts is a list of "Whose Who," that you need to know in Mexico.

If you are an exporter, you need to be in the Mexican market, and we are
here to assist you. If you have questions or comments regarding the
Guide, please contact our offices.

# U.S. Agricultural Trade Office, Mexico City U.S. Agricultural Trade Office, Monterrey

Christine Sloop, Director Dan Martinez, Director

Liverpool No. 31 Oficianas en el Parque Torrell

Col. Juarez Blvd. Diaz Ordaz No. 140, Piso 7

11510 Mexico, DF Col. Santa Maria, 64650

Tel: (011-5255) 5080-200 Ext. 4371 Monterrey, Nuevo Leon

Tel: (011-5255) 5140-2600 Tel: (011-5281) 8333-5289

Fax: (011-5255) 5535-8357 Fax: (011-5281) 8333-1248

Email: <atomexico@usda.gov> Email: <atomonterrey@usda.gov>

# 

# Section I. Market Overview

The Mexican market continues to be a growth market that represents one
of the best opportunities in the world for U.S. exporters of food
products. The United States will continue to experience, with Mexico,
trade irritants and non-tariff trade barriers, which does not negate the
fact that this market is continuously growing and represents the United
States' second most important trading partner after Canada. U.S.
agricultural and food exports to Mexico have been climbing at an annual
rate of almost 10 percent since 2002. Total agricultural fishery &
forestry exports for CY 2005 reached \$9.9 billion, an increase of 10
percent over the previous year's pace. Imports from Mexico reached a
record \$9.1 billion in 2005, 14 percent ahead of 2004. In the first
quarter of 2006, U.S. total exports to Mexico are up 20 percent, while
Mexican exports to the U.S. are up 30 percent from the previous year.
While the U.S. has for many years maintained an approximately \$1
billion trade surplus, in the last year that gap has begun to narrow.
Two-way trade of agricultural forestry and fisheries products is now
approaching nearly \$20 billion. Mexico continues to increase its focus
on exports. Therefore, to continue trading with the U.S. market; Mexico
will have to allow access for U.S. products to its market.

Mexico has implemented sound macro-economic policies that contributed to
a stable peso-dollar exchange rate and low inflation levels. The 2006
economic growth forecast for Mexico has been boosted to above 4 percent
due to an increase in consumer demand in the industry, services and
export sectors. According to Mexico's finance ministry, the Mexican
economy grew more than 4 percent in the second quarter of 2006 compared
with the same period in 2005, due partially to a surge in manufacturing
exports and strong investment. Mexico's economy remains heavily
dependent on oil exports, remittances and trade with the United States,
which purchases 90 percent of Mexico's exports.

Mexico rebounded from its financial crisis in the mid nineties, and U.S.
exports to Mexico have almost doubled from the pre-crisis level. In
2005, the United States experienced record level exports to Mexico in
the areas of intermediate and consumer oriented products, such as meat,
soy oil, poultry meat, dairy products, wine and beer. Our most important
exports, in terms of total sales, have been coarse grains, red meats,
and soybeans representing approximately 30 percent of total exports to
Mexico. Cotton, wheat, poultry and dairy products are also strongly
represented in the trade mix. Fresh vegetables and fruit account for
approximately 40 percent of the value of total Mexican exports to the
United States.

Mexico is experiencing a population growth of just over one percent,
adding to the current population of over 106 million. Fifty-three
percent of the population is under the age of 25 and seventy nine
percent of the population resides in the urban areas. These up and
coming consumers are more oriented towards U.S. products; therefore,
these demographic changes in Mexico bode well for increasing exports.
Women continue to join the workforce in larger numbers, which leads to
increased demand for consumer-ready food products. Urban women in
particular are shifting to healthier lifestyles for themselves and their
children and are thus shifting their food consumption patterns to a more
U.S./European style. These trends are also impacting supermarket growth.
About 45 percent of retail food sales go through supermarkets; that
figure is expected to grow 60-65 percent in five to ten years.
Supermarkets have better lighting, better displays, and maintain the
cold chain better than traditional food retailers. This definitely helps
sales of imported and usually higher value products.

The U.S. has a competitive advantage when it comes to Mexico. Sharing a
2,000 mile-long border and with multiple, sophisticated border
crossings, the United States is the natural supplier in this
just-in-time delivery market. In addition, the close proximity has made
the tourism and restaurant sectors a dynamic sector for U.S. exports.
Cancun and the Riviera Maya are up and running again after the ravages
of Hurricane Wilma. Tourist destinations like Puerto Vallarta and Los
Cabos on the Pacific Coast are booming. Most tourists are North
Americans and, to a large degree, they like to consume familiar
products.

Under NAFTA, Mexico has become one of the largest and fastest growing
markets for US agricultural products. Full implementation of NAFTA for
most products was in 2003, and even sensitive products are scheduled to
be duty free by 2008. U.S. agricultural fish and forestry exports have
more than doubled since the onset of NAFTA (from \$4.1 billion in 1993).

# Advantages and Challenges for US Exporters in Mexico

+---------------------------------+------------------------------------+
| **Advantages**                  | **Challenges**                     |
+---------------------------------+------------------------------------+
| -   The majority of U.S.        | -   Mexico continues to explore    |
|     products now enter Mexico   |     and use individual product by  |
|     tariff-free                 |     product policy measures on a   |
|                                 |     few sensitive products to      |
| -   Mexican consumers recognize |     protect the domestic industry, |
|     U.S. brands and labels and  |     such as safeguard and          |
|     associate U.S. made         |     anti-dumping cases             |
|     products with high quality  |                                    |
|     and value                   | -   Increasing competition from    |
|                                 |     Mexican food processing        |
| -   The US has strong           |     companies                      |
|     reputation for consistency  |                                    |
|     in the quality and supply   | -   Mexican consumers are quite    |
|     of U.S. products among      |     price conscious, and imported  |
|     retail chains               |     U.S. processed products in     |
|                                 |     general are 15-40 percent      |
| -   Population in urban centers |     higher in price                |
|     is growing and the rate of  |                                    |
|     employment among women is   | -   Transportation and             |
|     continuing to grow          |     distribution methods inside    |
|                                 |     Mexico are undeveloped in many |
| -   Proximity to U.S. market    |     regions                        |
|     keeps transportation costs  |                                    |
|     to Mexico low               | -   Imported products are subject  |
|                                 |     to often onerous Mexican       |
| -   The Mexican peso continues  |     quality standards (NOMs) and   |
|     to be relatively stable in  |     labeling requirements          |
|     its relation to the US      |                                    |
|     dollar, making unexpected   | -   Phytosanitary and technical    |
|     price fluctuations less     |     barriers and labeling          |
|     likely                      |     requirements can cause border  |
|                                 |     crossing problems and delays   |
| -   Continued growth in almost  |     as Mexican import regulations  |
|     all sectors of the          |     can change rapidly and without |
|     processed food industry in  |     notice                         |
|     Mexico, and increased       |                                    |
|     investments from national   | -   Mexico has signed 10 trade     |
|     and international based     |     agreements in the last decade  |
|     companies, including those  |     covering 60 percent of the     |
|     from the U.S., will raise   |     world's GDP, including Europe; |
|     the need for inputs         |     thus increasing third country  |
|                                 |     competition                    |
| -   The major retailers are     |                                    |
|     developing increasingly     |                                    |
|     sophisticated distribution  |                                    |
|     systems, which will provide |                                    |
|     more space and better cold  |                                    |
|     chain technology for        |                                    |
|     high-value imports          |                                    |
+---------------------------------+------------------------------------+

# Section II. Exporter Business Tips

## 

Business culture

Understanding local practices, cultural preferences and consumers'
behavior is a job the U.S. exporter should do to determine each
company's objective, each product, target audience, budget constraints,
and local distribution capabilities. To illustrate, if a company is
trying to develop a brand, then a massive means of promotion would
probably be the most appropriate tool. However, if it were an innovative
product that is to be introduced into a given market, then product
demonstration or sampling would be the most appropriate promotional
tool.

Personal relationships are the essential base of Mexican business
relationships. Mexicans attach great importance to courtesy in all
business endeavors. A warm handshake combined with conversation about
the person's well being, family, or other similar topics prior to
launching into any conversation related to business is considered a
common courtesy. The concept that "time is money" should be left at the
border and, though Mexican businesses are also conscious of the bottom
line, courtesy and diplomacy are more important values to most Mexicans
than getting immediately "down to business".

Personally visit your Mexican clients in Mexico. If a Mexican client
visits you in the United States, you are expected to wine and dine him.
You will be accorded similar treatment when visiting Mexico.

Entering the Mexican Market

U.S. exporters should consider contacting local distributors/importers
as an important early step in their efforts to establish themselves in
the Mexican market. A good distributor should promote sales and make
sure that the imported products are available at points of sale. It is
essential to maintain close contact with your representative, especially
regarding changes in import procedures and documentation.

An affordable way to investigate the market is to participate in and/or
attend Mexican trade shows, particularly U.S. Pavilions organized at
selected shows. A show can serve as a way to contact local
distributors/sales agents, buyers and businessmen, and to become
familiar with local competition. In the case of new-to-market companies,
be prepared to provide support for in-store and media promotions to
familiarize consumers with your products.

If possible, develop product information/promotional pamphlets in
Spanish. Generally, medium and small-sized U.S. companies that enter the
Mexican market leave all of the promotional efforts to their local
distributor or representative, relying entirely on their ability to sell
to major players in the market. However, industry experts believe that
in order to establish a long-term presence in Mexico, U.S. firms must
directly invest in marketing and promotion to increase their sales.

WHAT U.S. COMPANIES SHOULD KNOW

-   U.S. companies need to carry out market research to find out more
    about factors affecting their products such as local practices,
    competition, regulations, trends and distribution.

-   U.S. firms must "acclimatize" their product to the local social and
    cultural preferences.

-   U.S. companies should assign a specific budget to promoting the
    product locally.

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-   During the last ten years the marketing industry has evolved into a
    more sophisticated, segmented, and dynamic one.

Today, the choices U.S. firms have for marketing their products in
Mexico range from promoting their products at food trade shows,
point-of-sale displays, distributing promotional material in a
one-to-one approach, promotional services such as in-store promotions,
free sample campaigns, to advertising on billboards or utilizing other
mass media channels.

It is highly recommended that companies do a background check with local
associations before entering into contractual agreements with the
potential importers. Local associations are often a great source for
information and general orientation as to the most recommended strategy.
The best way to understand the Mexican market is to visit the
marketplace and to talk to buyers, retailers, distributors and other
players in order to prepare a more effective entry strategy. U.S.
exporters must do their research not only in terms of typical market
research, but also finding appropriate business contacts and thoroughly
reviewing Mexican import regulations in order to successfully seize
market opportunities and overcome market challenges.

More information is available on import regulations in the GAINS report
MX5064 that includes information on the processes and procedures for
exporting products across the US-Mexican border. Furthermore, the U.S.
Agricultural Trade Offices (ATO) of the United States Embassy with
offices in Mexico City and Monterrey can provide general market and
sector specific information, as well as assist U.S. exporters in
identifying trade contacts and developing their marketing strategies in
Mexico.

## Section III. Market Sector Structure and Trends

+-----------------------------------------------------------------------+
| A. Retail Sector                                                      |
|                                                                       |
| Food retailers in Mexico are comprised of four groups. First, there   |
| is a variety of 'small full-service stores' that tend to be           |
| 'independent' (not in chains), ranging from 'kiosks', small stands,   |
| serving pavement traffic to traditional small full-service shops,     |
| either selling a variety of groceries or specializing in fish, meat,  |
| fruit, vegetables, or baked goods.                                    |
|                                                                       |
| Second, there are 'traditional markets' (open-air or covered) that    |
| vary from 'plaza markets' in the center of towns or neighborhoods     |
| that have rows of small retailers or a mix of retailers and           |
| wholesalers, to 'street fairs'. The latter come under a variety of    |
| open-air street fairs and mobile markets. Street fairs are            |
| essentially smaller versions of plaza markets, but focused on         |
| perishables that move from neighborhood to neighborhood on a regular  |
| schedule.                                                             |
|                                                                       |
| Third, there are 'small self-service stores' (that is, smaller than   |
| supermarkets) that tend to be in chains, and vary from 'hard          |
| discounts' (sometimes on the borderline of being a small supermarket, |
| with a limited set of products, food or non-food or both, an austere  |
| format, and low prices) to 'convenience stores' such as those located |
| in petrol filling stations.                                           |
|                                                                       |
| Fourth, there are the large self-service stores, in chains or         |
| independent. Generally, these stores are classified as either         |
| 'supermarkets' (roughly 350 to 4000m2 and/or with 3-4 or more cash    |
| registers, with the precise definition varying somewhat over          |
| countries), or the larger 'hypermarkets'. Other large formats include |
| warehouse-formats and membership clubs. Supermarkets tend to have a   |
| higher share of food in total sales than do the hypermarkets or       |
| clubs.                                                                |
|                                                                       |
| In Mexico most of supermarket chains, convenience stores and          |
| department stores are associated with the National Retailers          |
| Association (ANTAD). Wal-Mart the largest supermarket of them all is  |
| not affiliated with ANTAD[.]{.smallcaps}                              |
|                                                                       |
| +----------------+---------------+---------------+---------------+    |
| | # Number of AN |               |               |               |    |
| | TAD Associates |               |               |               |    |
| +----------------+---------------+---------------+---------------+    |
| | Chains         | Stores        | (000 Sq.      | Nbr. Staff    |    |
| |                |               | meters)       |               |    |
| +----------------+---------------+---------------+---------------+    |
| | [Supermarket   | 1,441         | 5,811         | 206,342       |    |
| | s]{.smallcaps} |               |               |               |    |
| +----------------+---------------+---------------+---------------+    |
| | [Department    | 731           | 2,467         | 79,874        |    |
| | Store          |               |               |               |    |
| | s]{.smallcaps} |               |               |               |    |
| +----------------+---------------+---------------+---------------+    |
| | [Convenienc    | 8,847         | 2,122         | 46,593        |    |
| | e]{.smallcaps} |               |               |               |    |
| +----------------+---------------+---------------+---------------+    |
| | [Tota          | 11,019        | 10,399        | 332,810       |    |
| | l]{.smallcaps} |               |               |               |    |
| +----------------+---------------+---------------+---------------+    |
|                                                                       |
| The retail sector continues its incredible growth. Soriana            |
| (www.soriana.com) grew sales just over 13% for the second quarter of  |
| 2005 and is projecting 14% growth for the year. As of April 2006,     |
| Soriana has 204 outlets located in 85 of the most important cities in |
| 28 states in the country. Soriana also has six distribution centers,  |
| and the headquarters is located in Monterrey, N. L.                   |
|                                                                       |
| Total Sales Growth\                                                   |
| 2001-2006                                                             |
|                                                                       |
| 2001                                                                  |
|                                                                       |
| 2002                                                                  |
|                                                                       |
| 2003                                                                  |
|                                                                       |
| 2004                                                                  |
|                                                                       |
| 2005                                                                  |
|                                                                       |
| 2006                                                                  |
|                                                                       |
| Supermarkets                                                          |
|                                                                       |
| 3.4%                                                                  |
|                                                                       |
| -1.8%                                                                 |
|                                                                       |
| 2.8%                                                                  |
|                                                                       |
| 5.3% 4.3%                                                             |
|                                                                       |
| 3.2%                                                                  |
|                                                                       |
| Comercial Mexicana operates several store formats, which are          |
| Comercial Mexicana, Bodega CM, Mega, Costco and Sumesa, and           |
| Restaurantes California. Comercial Mexicana has the 50% in the        |
| participation with Costco Wholesale Corporation. In 2006, Comercial   |
| Mexicana opened a new store format, City Marque. As of December 2005, |
| the chain had 191 supermarkets.                                       |
|                                                                       |
| In addition to sales growth, supermarket chains are introducing new   |
| store formats, new sections within stores and are expanding into      |
| areas where they did not previously have presence. For example,       |
| Soriana's Mercado format is modeled on the traditional Mexican market |
| with a limited selection of staples and low prices. On another front, |
| Waldo's Mart (www.waldosmart.com.mx) has quietly grown its chain of   |
| single-price stores to include 148 units across the country.          |
| Reportedly, Wal-Mart and Gigante are considering a single-price       |
| format. Wal-Mart also is experimenting with specialty areas, like     |
| organic foods within supermarkets. Wal-Mart and Sam's Club have just  |
| opened 'new product' sections in their respective purchasing          |
| departments to introduce products specifically geared to the Mexican  |
| consumer. Finally, there is a concentrated movement of club stores    |
| like Costco, Sam's Club and City Club to open in resort areas, and    |
| sell to hotels and restaurants there (thus filling a void as there is |
| no national supplier of HRI products in Mexico).                      |
|                                                                       |
| **TotaL ANTAD Sq. m2 Growth**                                         |
|                                                                       |
| **Percentage, 1993-2005** ![](media/image2.wmf)                       |
|                                                                       |
| **Wal-Mart** Mexico, the country's largest retailer,                  |
| (www.walmartmexico.com.mx) had sales growth of almost 14% for the     |
| first 30 weeks of 2005 and is projecting medium term sales growth of  |
| 15%. Also, Wal-Mart added 16 new stores this year through early       |
| August, including 1 Superama, 2 Sam\'s Clubs, 3 Wal-Mart Super        |
| centers, and 10 Bodegas Aurrera, which brings its total to 837        |
| stores.                                                               |
|                                                                       |
| ![](media/image3.wmf)                                                 |
|                                                                       |
| > 55%                                                                 |
|                                                                       |
| A revolution in purchasing and distribution is ongoing. Wal-Mart,     |
| Soriana, Comercial Mexicana and Gigante have all introduced           |
| distribution centers for fresh and frozen, or dry goods or both. The  |
| latter three supermarkets also have formed a single purchasing        |
| company for dry goods, Sinergia, in an effort to combat the buying    |
| power of Wal-Mart. Consequently, supermarket chains are rapidly       |
| reducing purchases from traditional central markets. In addition, the |
| leading chains are quickly moving to systems of preferred suppliers   |
| and specialized distributors.                                         |
|                                                                       |
| What this means for exporters:                                        |
|                                                                       |
| • Traditional retail sales and marketing chains are changing rapidly. |
| Be prepared to make new contacts to keep your products on store       |
| shelves.                                                              |
|                                                                       |
| • Supermarkets are more and more interested in buying directly from   |
| suppliers, bypassing traditional distributors.                        |
|                                                                       |
| • If you have been selling into the HRI sector and want to take       |
| advantage of the club store movement to supply hotels and             |
| restaurants, you will have to label your products as if they were for |
| retail sale.                                                          |
|                                                                       |
| • Competition is fierce and retailers are constantly searching for    |
| new products, so you cannot take the Mexican market for granted. Come |
| every year to trade shows or to your distributors with your new       |
| products, as that is what consumers want.                             |
|                                                                       |
| Local producers are the main suppliers of consumer ready products.    |
| Mexico has a relatively strong food processing industry and leading   |
| Mexican brands have well-developed national distribution networks and |
| are well positioned in the market and enjoy high brand awareness with |
| consumers. Some of these companies include Grupo Industrial Bimbo     |
| (bread products) considered to have one of the country's best         |
| distribution systems, Nestle (food products in general), Herdez (food |
| products in general), Sabritas (snack foods) Grupo Industrial Lala    |
| (dairy products) and Jugos del Valle (fruit juices).                  |
|                                                                       |
| There are also several American and multinational producers/importers |
| in Mexico, including: Campbell's, Bacardi, General Mills, Gerber,     |
| Kellog\'s, Kraft Foods, Procter & Gamble, Frito Lay-Pepsico,          |
| Pilgrim\'s Pride, Purina, and Tyson.                                  |
|                                                                       |
| Competition among importers depends on the category. Competition from |
| Europe has increased as a result of the Mexico-European Union Free    |
| Trade Agreement, although meat and dairy products were excluded from  |
| the treaty. Canada, Australia and New Zealand export notable amounts  |
| of meat and dairy products to Mexico. New Zealand butter, for         |
| instance, is well positioned in Mexico City retailers. For additional |
| information on the retail sector, please refer to the GAINS Mexican   |
| retail report MX5303                                                  |
|                                                                       |
| **B. Food Processing Sector**                                         |
|                                                                       |
| In Mexico, according to the Business Registry of the Mexican          |
| Secretariat of Economy (SECO),                                        |
| [[www.economia.gob.mx]{.smallcaps}](http://www.economia.gob.mx/),     |
| there are over 8,000 food & beverage processing companies, generating |
| over half a million jobs, and handling a range of over 20,000         |
| different products.                                                   |
|                                                                       |
| Mexico offers very good opportunities for suppliers to the processed  |
| food sector. The demand for processed foods is increasing, and the    |
| industry is keeping pace. There are several emerging consumer and     |
| industry trends that are shaping the food processing industry. For    |
| example, Mexico is the world's largest per-capita consumer of soft    |
| drinks. An increase in the number of people plagued by diabetes and   |
| obesity, along with an aging population coincides with a market       |
| shortage of items geared towards these groups. Nonetheless, the       |
| consumption of fruit (fresh and prepared), meat products and dairy    |
| (especially yogurt and similar goods) is on the rise. A new class of  |
| Mexican consumer is demanding products that are healthy, convenient   |
| and innovative.                                                       |
|                                                                       |
| A number of demographic factors are directly influencing the          |
| performance of packaged foods in Mexico, namely, the increasing       |
| participation of women in the workforce and an aging population.      |
|                                                                       |
| The percentage of working women in Mexico increased substantially,    |
| rising from 18% in 1970 to 35% in 2005, according to census research  |
| by the National Population Council (CONAPO),                          |
| [[www.conapo.gob.mx]{.smallcaps}](http://www.conapo.gob.mx/).         |
|                                                                       |
| Females in the workforce are significant for two fundamental reasons. |
| First, their additional wages adds further to disposable household    |
| income to allow for the purchase of products previously perceived as  |
| too expensive. Second, with more women working and spending less time |
| engaged in domestic activities, Mexican consumers now are searching   |
| for more convenient food and foodservice alternatives.                |
|                                                                       |
| Other developments likely to be observed over the forecast period as  |
| a result of the working female trends, include safer packaging        |
| options to allow children to handle products on their own, smaller    |
| packaging options geared towards younger consumers as well as less    |
| affluent consumers, prepared or ready-to-eat meal substitutes and     |
| products with facilitated preparation times.                          |
|                                                                       |
| A number of manufacturers now target younger consumers with           |
| value-added fortified biscuits and cereals, among others. It is       |
| anticipated that higher life expectancy rates will be supported by    |
| increased health awareness.                                           |
|                                                                       |
| Additionally, companies in the food-processing sector have formed     |
| strategic alliances with foreign companies in search of technology,   |
| raw materials and capital. U.S. suppliers dominate Mexican imports of |
| raw materials and foreign direct investment for the sector. Between   |
| 1999 and 2004, US\$3.86 billion in foreign investment flowed into 645 |
| companies registered in the food-processing sector, out of which 50%  |
| received U.S. capital. Also, Mexico imports from the United States    |
| six times as much raw material for the industry as it exports.        |
| Imports for the food-processing sector grew 23 percent between 2001   |
| and 2005. The figures indicate a strong and growing dependence upon   |
| foreign suppliers to the industry, and U.S. suppliers are well        |
| positioned to take advantage of these opportunities.                  |
+-----------------------------------------------------------------------+

C. Hotel, Restaurant, Institutional (HRI) Sector

Mexico's hotel, restaurant and institutional food services (HRI) sector
continues to provide export opportunities. During 2005, Mexico received
a record number of international visitors of 21.9 million who spent over
\$11.8 billion. Total tourism GDP during 2005 reached \$59 billion
representing a 7.7 percent of the national GDP of which the consumer
foodservice contribution is estimated to be at around 2.4 percent.

The Mexico's Secretary of Tourism, reports 541,603 rooms in Mexico with
46 percent of them being Three, Four and Five star hotels. According to
the National Chamber of the Restaurant Industry (CANIRAC), Mexico has
around 223,000 established restaurants, which reported sales of \$14.1
billion in 2005.

> U.S. suppliers continue to enjoy favorable market conditions as
> Mexican consumers become more discerning and American restaurants and
> hotel chains expand operations in Mexico. The total value of U.S.
> exports of food and agricultural products not including fish and
> forestry products to Mexico were \$9.4 billion in 2005. In 2006, at
> current growth, U.S. agricultural exports to Mexico will be \$10.8
> billion. Sales of consumer-ready products account for 44 percent of
> these imports, and reached a record of \$4.2 billion in 2005. At the
> current pace, imports of consumer ready products during 2006 are
> expected to reach US \$4.9 billion.
>
> U.S. products are perceived to be of high quality and the United
> States has a 75 percent import market share in agricultural products,
> followed by Canada with 6 percent. American products dominate imports
> with the main competition coming from local firms. Of all food
> products consumed in hotels and restaurants, approximately 15 percent
> is imported.
>
> Independent distributors continue to be the main suppliers for the HRI
> sector. However, they have been experiencing greater competition from
> large Club Stores, which have been aggressively pursing their share of
> this market, especially in the resort areas.
>
> The largest growth is seen in tourist destinations, such as the
> Mexican Caribbean (Cancun and recently the Mayan Riviera) Huatulco in
> the South, Los Cabos and Puerto Vallarta in the West Coast. The main
> distribution centers continue to be the large central markets located
> in Mexico City, Monterrey y Guadalajara. However, with the
> modernization of port and airport infrastructure as well as logistic
> centers in many places, cities such as Cancun receive most of its
> imported items directly.
>
> While some hotels and restaurants do import directly, U.S. suppliers
> need to serve the market through an established distributor. Some
> hotels and restaurants, especially those belonging to international
> chains/franchises, have centralized controls that limit their
> individual ability to purchase new items. However, they are always
> looking for new products.
>
> The best prospects for U.S. exporters are with the large hotel groups
> and international-class restaurants since smaller establishments use
> fewer processed foods and a limited number of imported goods. Many
> U.S. food products, including frozen meats, poultry and dairy
> products, are purchased directly at large club stores for use in many
> restaurants.

The Mexico City ATO will release an HRI sector report in Feb. 2007.

# Section IV. Best High value Product Prospects

## 

From 2002 to 2005, U.S. consumer ready product sales have continued
their climb increasing 32.5 percent to record levels of \$4.2 billion
with record sales across many product categories such as poultry meat,
dairy, fresh vegetables, processed fruit and vegetables, breakfast
cereals and mixes, processed meat, wine and beer. In addition, record
sales were registered for intermediate and bulk products.

US EXPORTS OF CONSUMER READY AND INTERMEDIATE AGRICULTURAL PRODUCTS

**(In Thousands of US Dollars; Calendar Year Information)**

+-------------------+-----------+-----------+-----------+-----------+
| Product           | 2003      | 2004      | 2005      | Jan-Jul   |
|                   |           |           |           | 2006      |
+-------------------+-----------+-----------+-----------+-----------+
| Dairy Products    | 251,385   | 387,263   | 507,454   | 241,610   |
+-------------------+-----------+-----------+-----------+-----------+
| Poultry Meat      | 259,536   | 330,652   | 451,599   | 250,019   |
+-------------------+-----------+-----------+-----------+-----------+
| Snack Foods       | 179,657   | 190,606   | 226,334   | 129,130   |
+-------------------+-----------+-----------+-----------+-----------+
| Brfast            | 57,318    | 60,608    | 59,697    | 34,181    |
| cereals/dry mixes |           |           |           |           |
+-------------------+-----------+-----------+-----------+-----------+
| Processed Fruits  | 383,768   | 402,906   | 407,103   | 236,602   |
| and Vegetables    |           |           |           |           |
+-------------------+-----------+-----------+-----------+-----------+
| Wine/beer         | 57,299    | 66,006    | 75,249    | 51,041    |
+-------------------+-----------+-----------+-----------+-----------+
| Red Meats         | 1,126,343 | 1.067,870 | 1,339,888 | 939,185   |
|                   |           |           |           |           |
| (fres             |           |           |           |           |
| h/chilled/frozen) |           |           |           |           |
+-------------------+-----------+-----------+-----------+-----------+
| Red Meats         | 157,087   | 91,624    | 97,108    | 61,152    |
|                   |           |           |           |           |
| (pr               |           |           |           |           |
| epared/preserved) |           |           |           |           |
+-------------------+-----------+-----------+-----------+-----------+
| Rice              | 140,398   | 182,823   | 165,434   | 113,608   |
+-------------------+-----------+-----------+-----------+-----------+
| Soybean Meal      | 150,812   | 216,477   | 321,219   | 212,936   |
+-------------------+-----------+-----------+-----------+-----------+
| Sugars,           | 40,118    | 64,772    | 122,408   | 113,264   |
| sweeteners,       |           |           |           |           |
| beverage bases    |           |           |           |           |
+-------------------+-----------+-----------+-----------+-----------+
| Forest products   | 396,817   | 458,614   | 513,272   | 336,521   |
+-------------------+-----------+-----------+-----------+-----------+

Source: USDA bulk, intermediate, and consumer-oriented agricultural
product data (BICO).

## Section V. Key Contacts

## 

The primary mission of the U.S. Agricultural Trade Offices (ATO) in
Mexico City and Monterrey is to assist in the market development and
promotion of U.S. food and agricultural products in the Mexican market.
There are a wide variety of activities and services that the ATOs, along
with other private sector representatives called "cooperators," make
available to help develop U.S. agricultural interests in Mexico. If you
have any questions or comments regarding this report or need assistance
exporting U.S. food and beverage products to Mexico, please contact the
ATOs in Mexico City or Monterrey.

# 

The Mexico City ATO has changed its location along with the nine
cooperators that were formerly co-located at the Jaime Balmes address.
The addresses below are updated and should be used for all contacts.

# U.S. Agricultural Trade Office, Mexico City

Christine Sloop, Director

Liverpool No. 31

Col. Juarez

11510 Mexico, DF

Tel: (011-5255) 5080-200 Ext. 4371

Tel: (011-5255) 5140-2600

Fax: (011-5255) 5535-8357

Email: <atomexico@usda.gov>

# U.S. Agricultural Trade Office, Monterrey

Dan Martinez, Director

Oficianas en el Parque Torrell

Blvd. Diaz Ordaz No. 140, Piso 7

Col. Santa Maria, 64650

Monterrey, Nuevo Leon

Tel: (011-5281) 8333-5289

Fax: (011-5281) 8333-1248

Email: <atomonterrey@usda.gov>

# U.S. Cooperators in Mexico

AMERICAN FOREST & PAPER ASSOCIATION

Sierra Candela \# 111- 507

Col. Lomas de Chapultepec

11000 Mexico, D.F.

Tel: (011-5255) 2623-1838

Fax: (011-5255) 2623-1853

Email: infoafpa@prodigy.net.mx

AMERICAN HARDWOOD EXPORT COUNCIL

Luis B. Zertuche, Regional Director, Latin America

Sierra Candela \# 111- 507

Col. Lomas de Chapultepec

11000 Mexico, D.F.

Tel: (011-5255) 2623-1850 and 51

Fax: (011-5255) 2623-1853

Email: luis.zertuche@prodigy.net.mx

AMERICAN SOFTWOODS AND AMERICAN PLYWOOD ASSOCIATION

Fernanda Vale Garcia, Director

Sierra Candela \# 111- 507

Col. Lomas de Chapultepec

11000 Mexico, D.F.

Tel: (011-5255) 2623-1833

Fax: (011-5255) 2623-1834

Email: fvale@softwood.org

CALIFORNIA TABLE GRAPE COMMISSION

Adrian Rivera Felix

Pirules \# 18 - B. Valle Verde

38160, Queretaro, Qro.

Tel: (011-52-442) 235-0437

Cel. (011-52-442) 265-5571

Email: agrosistemas@att.net.mx.

CALIFORNIA WINE INSTITUTE

Jessika P. Gonzales, Director

Sur 75 \# 4415

Col. Viaductor Piedad

08200, Mexico, D.F.

Tel/Fax: 5686-7032

Email: wineinstitute@mexico.com

COTTON INCORPORATED

Jaime Flores Cornejo

Av. Insurgentes Sur #1605-9C

03900 México, D.F.

Tel: (011-5255) 5663-4020

Fax: (011-5255) 5663-4023

Email: JFlores@cottoninc.com

GRUPO PM SA DE CV

Luis Moreno, Director

Mercurio 24, Col. Jardines de Cuernavaca

62360 Cuernavaca, Morelos

Tel: (011-52) (777) 316-7370

Fax: (011-52) (777) 316-7369

Email grupopm@grupopm.com

NATIONAL COTTONSEED PRODUCTS ASSOCIATION

Ricardo Silva, Representative

Paseo de las Eglantinas 4157

Fracc. Parques de la Canada

25020 Saltillo, Coahuila

Tel/Fax: (011-52-844) 489-3285

Email: ricsilva@infosel.net.mx

MARKETING SOLUTIONS FIRM

Raul Caballero, Director

San Juan de Los Lagos #52, S. Monica

54050 Tlalnepantla, Edo. de Mexico

Tel: (011-5255) 5362-7407

Fax: (011-5255) 5362-6724

Email: raul@marketingsolutionsfirm.com

NATIONAL RENDERERS ASSOCIATION

German Davalos, Director

Sierra Candela \# 111- 501

Col. Lomas de Chapultepec

11000 Mexico, D.F.

Tel: (011-5255) 5980-6080

Fax: (011-5255) 5980-6081

Email: nramex@nralatinamerica.org

NATIONAL SUNFLOWER ASSOCIATION

Jose Luis Escamilla, Representative

Jose Ma. Rico #212-702

Col. Del Valle

03100 Mexico, D.F.

Tel: (011-5255) 5524-8273/5524-8192

Fax: (011-5255) 5534-8997

Email: escgrain@avantel.net, rivercat@compuserve.com.mx

US DAIRY EXPORT COUNCIL

Larry Solberg, Director

U.S. Dairy Export Council

Calle Matanzas \# 733 Interior B

Colonia Lindavista, Delegaciòn Gustavo A. Madero

Mèxico, D.F., CP07300

Tel/Fax: (011 5255) 5119 04 75 / 76 / 77

Email: rafernandez@marcatel.com.mx

Regules \# 2 esquina Madero Interior 3

Colonia Centro, CP 76000

Querètaro, Querètaro

US GRAINS COUNCIL

Ricardo Celma, Director

Jaime Balmes \# 8 - 602

Col. Los Morales Polanco

11510 Mexico, D.F.

Tel: (011-5255) 5282-0973/0974/0977/0244

Fax: (011-5255) 5282-0968, 5282-0969

Email: mexico@grains.org.mx

US MEAT EXPORT FEDERATION

Gilberto Lozano, Director

Jaime Balmes \# 8 - 602

Col. Los Morales Polanco

11510 Mexico, D.F.

Tel: (011-5255) 5281-6100

Fax: (011-5255) 5281-6013

Email: mexico@usmef.org

US POULTRY & EGG EXPORT COUNCIL

Jose Luis Cruz, Director

Oficinas en el Parque Torrell

Blvd. Diaz Ordaz No. 140, Piso 7

Col. Santa Maria, 64650

Monterrey, Nuevo Leon

Tel: (011-5281) 8333-7582

Fax: (011-5281) 8333-1248

Email: luispo@prodigy.net.mx

Alma Lilia de Leon, Deputy Director

Sierra Candela \# 111- 509

Col. Lomas de Chapultepec

11000 Mexico, D.F..

Tel: (011-5255) 5980-6090

Fax: (011-5255) 5980-6085

Email: aliliadeleon@prodigy.net.mx

US SOYBEAN EXPORT COUNCIL

Mark Andersen, Director

Guadalajara World Trade Center

Av. Mariano Otero \# 1249

Col. Rinconada del Bosque

44530, Guadalajara, Jal.

Tel: (011-5233) 5000-0990

Fax: (011-5233) 5000-0999

Email: asamex@soyamex.com.mx

US WHEAT ASSOCIATES

####### Mitch Skalicky, Director

Paseo de Las Palmas 405, Suite 304

Colonia Lomas de Chapultepec

Mexico City, D.F. Mexico 11000

Tel: (52-55) 5025-7688

(52-55) 5025-7689

Email: mskalicky@uswheat.org

WASHINGTON STATE APPLE COMMISSION

Juan Carlos Moreira Martin

Hacienda de Coyotillos #128 Juriquilla

76230, Queretaro, Qro.

Tel & Fax: (011-442) 218-1097

Email: mexjcmwac@prodigy.net.mx.

# 

# Appendix -- Statistics

Mexican Imports from the United States and the World

**(In Millions of USD)**

<table>
<colgroup>
<col style="width: 24%" />
<col style="width: 11%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
</colgroup>
<tbody>
<tr class="odd">
<td rowspan="2"></td>
<td colspan="3"><strong>Imports From the World</strong></td>
<td colspan="3"><p><strong>Imports From</strong></p>
<p><strong>the US</strong></p></td>
<td colspan="3"><strong>US Market Share</strong></td>
</tr>
<tr class="even">
<td><strong>2003</strong></td>
<td><strong>2004</strong></td>
<td><strong>2005</strong></td>
<td><strong>2003</strong></td>
<td><strong>2004</strong></td>
<td><strong>2005</strong></td>
<td><strong>2003</strong></td>
<td><strong>2004</strong></td>
<td><strong>2005</strong></td>
</tr>
<tr class="odd">
<td><span class="smallcaps">Beef Fresh/Chilled</span></td>
<td>794</td>
<td>670</td>
<td>820</td>
<td>720</td>
<td>415</td>
<td>654</td>
<td>91</td>
<td>62</td>
<td>80</td>
</tr>
<tr class="even">
<td><span class="smallcaps">Poultry Meat</span></td>
<td>327</td>
<td>386</td>
<td>532</td>
<td>317</td>
<td>334</td>
<td>461</td>
<td>97</td>
<td>87</td>
<td>87</td>
</tr>
<tr class="odd">
<td><span class="smallcaps">Dairy, Eggs, Honey</span></td>
<td>731</td>
<td>897</td>
<td>1147</td>
<td>305</td>
<td>403</td>
<td>542</td>
<td>42</td>
<td>45</td>
<td>47</td>
</tr>
<tr class="even">
<td><span class="smallcaps">Cheese</span></td>
<td>2701</td>
<td>3571</td>
<td>2591</td>
<td>820</td>
<td>1394</td>
<td>1291</td>
<td>30</td>
<td>39</td>
<td>50</td>
</tr>
<tr class="odd">
<td><span class="smallcaps">Vegetables</span></td>
<td>203</td>
<td>213</td>
<td>225</td>
<td>157</td>
<td>170</td>
<td>176</td>
<td>77</td>
<td>80</td>
<td>78</td>
</tr>
<tr class="even">
<td><span class="smallcaps">Edible Fruit and Nuts</span></td>
<td>523</td>
<td>523</td>
<td>588</td>
<td>359</td>
<td>350</td>
<td>451</td>
<td>69</td>
<td>67</td>
<td>77</td>
</tr>
<tr class="odd">
<td><span class="smallcaps">Cereals</span></td>
<td>1870</td>
<td>2010</td>
<td>1864</td>
<td>1697</td>
<td>1830</td>
<td>1703</td>
<td>91</td>
<td>91</td>
<td>91</td>
</tr>
<tr class="even">
<td><span class="smallcaps">Preserved Food</span></td>
<td>383</td>
<td>394</td>
<td>438</td>
<td>256</td>
<td>261</td>
<td>290</td>
<td>67</td>
<td>66</td>
<td>66</td>
</tr>
<tr class="odd">
<td><span class="smallcaps">Baking Related</span></td>
<td>437</td>
<td>519</td>
<td>613</td>
<td>243</td>
<td>338</td>
<td>406</td>
<td>57</td>
<td>65</td>
<td>66</td>
</tr>
<tr class="even">
<td><span class="smallcaps">Beverages</span></td>
<td>385</td>
<td>417</td>
<td>471</td>
<td>159</td>
<td>143</td>
<td>155</td>
<td>41</td>
<td>34</td>
<td>33</td>
</tr>
<tr class="odd">
<td><span class="smallcaps">Dog, Cat, Retail Sale</span></td>
<td>57</td>
<td>27</td>
<td>45</td>
<td>107</td>
<td>69</td>
<td>86</td>
<td>53</td>
<td>39</td>
<td>52</td>
</tr>
<tr class="even">
<td><span class="smallcaps">Hides and Skins</span></td>
<td>847</td>
<td>1020</td>
<td>934</td>
<td>567</td>
<td>698</td>
<td>513</td>
<td>67</td>
<td>68</td>
<td>55</td>
</tr>
<tr class="odd">
<td><span class="smallcaps">Cut Flower</span></td>
<td>3446</td>
<td>3299</td>
<td>2856</td>
<td>724</td>
<td>568</td>
<td>248</td>
<td>21</td>
<td>17</td>
<td>9</td>
</tr>
<tr class="even">
<td><span class="smallcaps">Crustaceans</span></td>
<td>34</td>
<td>29</td>
<td>45</td>
<td>6720</td>
<td>4542</td>
<td>8649</td>
<td>1</td>
<td>1</td>
<td>1</td>
</tr>
<tr class="odd">
<td><span class="smallcaps">Salmon Atltc, Danube</span></td>
<td>979</td>
<td>143</td>
<td>218</td>
<td>9</td>
<td>5</td>
<td>8</td>
<td>1</td>
<td>3</td>
<td>4</td>
</tr>
<tr class="even">
<td><span class="smallcaps">Other Seafood</span></td>
<td>12</td>
<td>11</td>
<td>11</td>
<td>3</td>
<td>3</td>
<td>4</td>
<td>25</td>
<td>27</td>
<td>36</td>
</tr>
</tbody>
</table>

[Source: World Trade Atlas]{.smallcaps}

  ----------- ----------- -- ------------- ----------- -- ------------ ------------ ------------ ----- ------------ ------------ ------------ --- ------- ------- --------- --------- --- ------- ------- ---------- ---------- -- ------ -- -- --
                                                                                    **World                                                                                                                                                     
                                                                                    Trade                                                                                                                                                       
                                                                                    Atlas**                                                                                                                                                     

                                                                                    **Mexico -                                                                                                                                                  
                                                                                    Imports                                                                                                                                                     
                                                                                    -Total-**                                                                                                                                                   

                                                                                    **08 EDIBLE                                                                                                                                                 
                                                                                    FRUIT AND                                                                                                                                                   
                                                                                    NUTS**                                                                                                                                                      

                                                                                    **Millions                                                                                                                                                  
                                                                                    of US                                                                                                                                                       
                                                                                    Dollars**                                                                                                                                                   

                                                                                    January -                                                                                                                                                   
                                                                                    June                                                                                                                                                        

                                                                                                                                                                                                                                                

  ** **                      ** **                        ** **                     ** **                           ** **                                 ** **   **%                             ** **              **%                        
                                                                                                                                                                  Share**                                            Change**                   

  Rank                       Country                      2004                      2005                            2006                                  2004    2005                            2006               \- 06/05 -                 

                                                                                                                                                                                                                                                

  1                          United States                149.158612                196.233874                      240.412403                            58.12   70.24                           69.41              22.51                      

  2                          Chile                        89.927992                 68.034257                       88.409367                             35.04   24.35                           25.52              29.95                      

  3                          Argentina                    4.793108                  7.924557                        9.004804                              1.87    2.84                            2.6                13.63                      

  4                          Canada                       6.607163                  1.565233                        2.556933                              2.57    0.56                            0.74               63.36                      

  5                          China                        0.498402                  0.569993                        1.472343                              0.19    0.2                             0.43               158.31                     

  6                          Iran                         1.352719                  0.808637                        0.989852                              0.53    0.29                            0.29               22.41                      

  7                          Spain                        0.434434                  0.901473                        0.804221                              0.17    0.32                            0.23               -10.79                     

  8                          Philippines                  0.211451                  0.274283                        0.70184                               0.08    0.1                             0.2                155.88                     

  9                          Turkey                       0.317429                  0.308288                        0.428016                              0.12    0.11                            0.12               38.84                      

  10                         New Zealand                  0.224559                  0.258125                        0.388224                              0.09    0.09                            0.11               50.4                       

                                                                                                                                                                                                                                                

  Source of                                                                                                                                                                                                                                     
  data:                                                                                                                                                                                                                                         
  Secretary                                                                                                                                                                                                                                     
  of Economy                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                

                                                                                                       **World                                                                                                                                  
                                                                                                       Trade                                                                                                                                    
                                                                                                       Atlas**                                                                                                                                  

                                                                                                       **Mexico -                                                                                                                               
                                                                                                       Imports                                                                                                                                  
                                                                                                       -Total-**                                                                                                                                

                                                                                                       **02 MEAT**                                                                                                                              

                                                                                                       **Millions                                                                                                                               
                                                                                                       of US                                                                                                                                    
                                                                                                       Dollars**                                                                                                                                

                                                                                                       January -                                                                                                                                
                                                                                                       June                                                                                                                                     

                                                                                                                                                                                                                                                

              ** **                        ** **                       ** **                           ** **                     ** **            ** **                     **%           ** **           **%                                   
                                                                                                                                                                            Share**                       Change**                              

              Rank                         Country                     2004                            2005                      2006             2004                      2005          2006            \- 06/05 -                            

                                                                                                                                                                                                                                                

              1                            United                      600.452717                      859.318498                990.931275       65.79                     77.16         83.4            15.32                                 
                                           States                                                                                                                                                                                               

              2                            Canada                      226.466261                      139.094277                97.143344        24.81                     12.49         8.18            -30.16                                

              3                            Chile                       25.429218                       56.990656                 54.607469        2.79                      5.12          4.6             -4.18                                 

              4                            New Zealand                 28.195874                       26.440428                 21.787279        3.09                      2.37          1.83            -17.6                                 

              5                            Australia                   24.116354                       25.465033                 17.155956        2.64                      2.29          1.44            -32.63                                

              6                            Costa Rica                  1.512038                        2.542501                  1.856677         0.17                      0.23          0.16            -26.97                                

              7                            Spain                       0.331348                        0.804345                  1.325008         0.04                      0.07          0.11            64.73                                 

              8                            Denmark                     0.740512                        0.421565                  1.215693         0.08                      0.04          0.1             188.38                                

              9                            Nicaragua                   3.818284                        1.443206                  1.088781         0.42                      0.13          0.09            -24.56                                

              10                           Panama                      1.109019                        0.932324                  0.954808         0.12                      0.08          0.08            2.41                                  

                                                                                                                                                                                                                                                

              Source of                                                                                                                                                                                                                         
              data:                                                                                                                                                                                                                             
              Secretary                                                                                                                                                                                                                         
              of Economy                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                
  ----------- ----------- -- ------------- ----------- -- ------------ ------------ ------------ ----- ------------ ------------ ------------ --- ------- ------- --------- --------- --- ------- ------- ---------- ---------- -- ------ -- -- --

# 

  ----------- ------------- ------------ ------------------------ ------------ ------- --------- ------- ----------
                                         **World Trade Atlas**                                           

                                         **Mexico - Imports                                              
                                         -Total-**                                                       

                                         **04                                                            
                                         DAIRY,EGGS,HONEY,ETC**                                          

                                         **Millions of US                                                
                                         Dollars**                                                       

                                         January - June                                                  

                                                                                                         

  ** **       ** **         ** **        ** **                    ** **        ** **   **%       ** **   **%
                                                                                       Share**           Change**

  Rank        Country       2004         2005                     2006         2004    2005      2006    \- 06/05 -

                                                                                                         

  1           United States 163.668403   206.137727               252.901315   37.38   40.79     49.72   22.69

  2           New Zealand   111.924444   139.197314               126.940919   25.56   27.54     24.96   -8.81

  3           Chile         26.608319    39.570207                33.640849    6.08    7.83      6.61    -14.98

  4           Argentina     22.271542    19.667426                26.078437    5.09    3.89      5.13    32.6

  5           Uruguay       17.870374    21.244775                18.191606    4.08    4.2       3.58    -14.37

  6           Australia     8.333528     5.853982                 12.86467     1.9     1.16      2.53    119.76

  7           Belgium       9.879918     14.279602                7.702431     2.26    2.83      1.51    -46.06

  8           Netherlands   11.212926    6.681078                 7.669102     2.56    1.32      1.51    14.79

  9           United        8.484788     7.051452                 5.822695     1.94    1.4       1.15    -17.43
              Kingdom                                                                                    

  10          Spain         7.961265     13.993199                4.691148     1.82    2.77      0.92    -66.48

                                                                                                         

  Source of                                                                                              
  data:                                                                                                  
  Secretary                                                                                              
  of Economy                                                                                             

                                                                                                         
  ----------- ------------- ------------ ------------------------ ------------ ------- --------- ------- ----------

  ----------- ------------- ------------ ------------------ ------------ ------- --------- ------- ----------
                                         **World Trade                                             
                                         Atlas**                                                   

                                         **Mexico - Imports                                        
                                         -Total-**                                                 

                                         **21 MISCELLANEOUS                                        
                                         FOOD**                                                    

                                         **Millions of US                                          
                                         Dollars**                                                 

                                         January - June                                            

                                                                                                   

  ** **       ** **         ** **        ** **              ** **        ** **   **%       ** **   **%
                                                                                 Share**           Change**

  Rank        Country       2004         2005               2006         2004    2005      2006    \- 06/05 -

                                                                                                   

  1           United States 317.005142   351.534383         375.152905   85.94   83.04     80.29   6.72

  2           Uruguay       0.004693     17.427356          23.594265    0       4.12      5.05    35.39

  3           Chile         9.149967     7.871124           11.686773    2.48    1.86      2.5     48.48

  4           Canada        8.567231     8.517839           8.678567     2.32    2.01      1.86    1.89

  5           Netherlands   5.350948     5.266771           8.215093     1.45    1.24      1.76    55.98

  6           Guatemala     4.174272     4.986886           5.869115     1.13    1.18      1.26    17.69

  7           Taiwan        0.141288     0.566443           4.907786     0.04    0.13      1.05    766.42

  8           Spain         3.601551     4.546312           4.41666      0.98    1.07      0.95    -2.85

  9           Colombia      1.28508      2.401051           3.252036     0.35    0.57      0.7     35.44

  10          France        1.815296     1.40929            2.469113     0.49    0.33      0.53    75.2

                                                                                                   

  Source of                                                                                        
  data:                                                                                            
  Secretary                                                                                        
  of Economy                                                                                       

                                                                                                   
  ----------- ------------- ------------ ------------------ ------------ ------- --------- ------- ----------

**D.** **Charts comparing composition by product category for US sales
of agricultural, fish and forestry products**

Product segment's share of Mexico's \$10.76 billion market for

US agricultural, fish and forestry products 2005

![](media/image5.wmf)

[Source: Bico report]{.smallcaps}