GREEN GOLD" AND MORE: AN AGRICULTURE SUCCESS STORY

UNCLAS GUADALAJARA 000077


E.O. 12958: N/A
TAGS: EAGR ETRD ECON MX
SUBJECT: GREEN GOLD" AND MORE: AN AGRICULTURE SUCCESS STORY


1. Summary: The Animal and Plant Health Inspection Service
(APHIS) oversees an inspection and preclearance program that has
spurred impressive growth in the export of avocados, mangoes,
and citrus fruit to the United States. The value of these
exports in 2008 surpassed US$850 million and continues to grow,
supporting thousands of people in rural areas of many central
and southern states that offer few other legal economic
opportunities. The industry's success rests entirely on the
integrity and professionalism of the inspection and pest
treatment process, however, and a rise in the number of
agricultural pests detected at US ports of entry is cause for
concern. Nevertheless, in a period when a majority of economic
news has been negative, the export of APHIS-inspected and
treated fruit products is a resounding success story. End
Summary.

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Avocados: From Contraband~.
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2. In 1914 the US placed an import ban on most Mexican avocados
citing concerns about the pests that would accompany the
shipments and possibly affect US agriculture. That ban has been
slowly lifted since 1997 when Mexican avocados were finally
allowed to be imported to certain northern and central states
during the winter months. During the next 10 years more states
were allowed to import Mexican avocados and the import season
was gradually expanded until February 1, 2007 when all 50 states
could import year-round, provided the fruit was properly
inspected prior to shipment.

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To "Green Gold"
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3. The lifting of import restrictions on avocados has led to
tremendous growth for producers in Mexico. In the 2008 export
season the number of producers participating in the APHIS
pre-clearance program increased 40% to 4,400 and total avocado
exports were up by 73%. The value of avocados shipped during the
2008 export season amounted to over US$652 million. The vast
majority of this production is in the state of Michoacan in
southwest Mexico. Initial data for the 2009 season indicates
that export growth will continue at record pace.

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Mango Millions:
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4. Mangoes represent another APHIS export success story, and
cover a much broader geographic area. In 2008 APHIS certified
two additional hot water immersion facilities for the treatment
and packing of mangoes prior to export, for a total of 48
installations throughout the country. In addition, for the
first time fresh cut mango was exported to the US from a
facility in the state of Baja California. Mangoes are brought
from Mexico, Brazil, and Ecuador for treatment, cutting, and
packaging, and producers are excited by the potential growth of
this new product in the US market. The total value of mangoes
exported to the US from Mexico in 2008 was over US$215 million.

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Citrus Too:
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5. In 2008, APHIS certified two new forced hot air chambers
(FHA) in Mexico (bringing the total to four) for the inspection
and treatment of citrus fruit prior to shipment to the US. More
FHA chambers are planned and there is hope that this system will
eventually replace the use of methyl bromide for fruit
treatment. The pesticide methyl bromide is on the list of
ozone-depleting substances in the Montreal Protocol but it is
used under the Quarantine and Preshipment (QPS) exemption in the
same act. During the 2008 export season more than 630,000 boxes
of fruit were shipped from APHIS-supervised treatment facilities
in Mexico with a value of over US$9.4 million.

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Profound and Positive Effects:
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6. The recent lifting of trade restrictions on Mexican produce
and increased importations by the US has had a large economic
impact on rural Mexico. When the remaining barriers to avocado
export were lifted in February 2007, Mexican president Felipe
Calderon led a celebration in his home state of Michoacan. This
state produces around 80% of Mexico's avocados and is also a
leading source of documented and undocumented migrant laborers
in the US. Calderon noted in the celebration that a strong
avocado industry would undoubtedly contribute to slowing the
migration of Mexican men and women to the US. In 2006 the US
accounted for 26% of world avocado imports and Mexico
represented over one-third of global production. In a state like
Michoacan, increased demand from the US means increased economic
opportunity for the rural population, and lessens the incentive
to engage in illicit activities such as narcotrafficking. Tens
of thousands of people, many in remote rural areas with no other
legal means of support, now owe their livelihoods to
agricultural exports enabled by APHIS inspections.


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Pride and Pestilence: The Twin Challenges
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7. The historic ban on Mexican produce was based on the need to
keep out potential biological threats to US agriculture. The
lifting of trade restrictions was possible only with strong
scientific evidence that the imports posed little realistic
threat, and that reliable inspections and treatments under the
auspices of APHIS would ensure that exports met phytosanitary
requirements. Thus, when APHIS found a notable increase in larva
(both dead and live) found at treatment plants and ports of
entry during the 2008 export season, it was cause for concern.
Pest control measures in the field are managed by Mexico's USDA
equivalent SAGARPA and this increase could indicate that these
measures have not been completely effective. In addition,
SAGARPA has indicated on a number of occasions that it would
like to take over the entire inspection process, claiming that
it is capable of overseeing the work. While technically true,
SAGARPA is vulnerable to corruption and pressure from
unscrupulous growers that could endanger the export trade.
Given political pressures in the US, a significant pest outbreak
could prompt an outright export ban and devastate the entire
industry, and the jobs that depend on it.

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Comment: A True Success Story:
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8. The impressive growth of avocado, mango, and citrus exports
from Mexico depends entirely on the integrity and efficiency of
the APHIS preclearance program, without which these products
would not be admitted into the US. At minimal cost (most APHIS
expenses are paid by the Mexican producers' associations) these
exports amounted to over US$900 million in 2008 and supported
thousands of licit rural jobs. The Michoacan avocado
association is now looking at land in neighboring states such as
Jalisco to expand production. APHIS too, is exploring new
opportunities, such as the inauguration of Mexico's first
irradiation plant in Hidalgo state to treat guava fruit for
export to the US. If profitable and sustainable, this will
become yet another chapter in the agricultural success story
built on the foundation of APHIS inspections. A successful
agriculture industry exporting legal goods increases security
and stability in Mexico and works to stem the flow of
undocumented migrants across US borders.


RAMOTOWSKI