Market Information
Latin America and Caribbean

Overview of the Mexican Pulse and Special Crops Market

Prepared by Agriculture Section - Alejandro Ruiz, Commercial Officer
Canadian Embassy, Mexico

Beans

Over the last few years Mexico has registered an average production of one million tonnes of beans per year. However, in 2002 the production increased to 1.6 million tonnes.

Around 95% of the Mexican consumption of beans (1.7 million tonnes in 2002) is covered by domestic production and the remaining 5% is imported.

The Mexican imports of beans do not show a clear trend, since they depend on the domestic output and are limited by the Tariff Rate Quotas (TRQs) established under NAFTA.

During 2002 the Mexican imports of beans from the world reached 101,206 tonnes with a value of 62.1 million US$.

As mentioned before, the Canadian exports of beans to Mexico are subject to a TRQ under NAFTA. The TRQ for 2003 is 1,957 tonnes with an in-quota duty of 0% and an out-of-quota duty of 58.7% (for more information see section about market access conditions for Canadian pulses and special crops).

During 2001 the Canadian exports of beans to Mexico reached a record of 8,600 tonnes (6,755 tonnes over the TRQ for 2001). Even though the Canadian exports of beans to Mexico reduced to 4,189 tonnes with a value of 1.8 million US$ during 2002, they were again above the TRQ for that year (1,900 tonnes).

The main supplier of beans to Mexico is the U.S. with a market share of more than 90%, Canada has a market share of around 4% and the rest is divided between Chile, Nicaragua, Thailand and China.

The main types of beans imported by Mexico are black beans.

Mexican imports of dry beans from the world
(Metric Tonnes)
Coun-try	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	56,226	24,804	126,585	88,832	200,609	126,346	86,499	124,157	101,206
Canada	1,262	696	4,877	1,685	6,336	1,736	1,791	8,600	4,189
U.S.	54,964	24,048	119,972	86,628	189,973	121,617	84,708	115,557	97,017
Others	0	60	1,736	520	4,299	2,992	0	1	0

Source: Mexican Ministry of Economy.

Mexican imports of dry beans from the world
(Million US$)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	36.1	13.4	84.3	52.6	127.2	69.1	39.3	54.9	62.1
Canada	0.8	0.4	3.1	0.8	3.9	0.9	0.7	3.2	1.8
U.S.	35.4	12.9	80.0	51.5	119.8	66.4	38.6	51.6	60.3
Others	0.0	0.1	1.1	0.3	3.5	1.8	0.0	0.0	0.0

Source: Mexican Ministry of Economy.

Lentils

Over the last years, the Mexican consumption of lentils has been growing, jumping from 26,067 tonnes in 1994 to 32,282 thousand tonnes in 2002.

Mexico has a small production of lentils (around 7,000 tonnes on average per year), so most of the domestic demand is covered by imports.

Canada dominates the Mexican market of lentils. Around 90% of the total lentils consumed in Mexico originated in Canada.

Since the implementation of NAFTA, the Canadian exports of lentils to Mexico have almost doubled, moving from 15,035 tonnes with a value of 6.5 million US$ in 1994 to 28,423 tonnes with a value of 8.9 million US$ in 2002.

Mexican imports of lentils from the world
(Metric Tonnes)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	15,967	11,001	23,281	25,058	25,587	24,497	25,523	31,057	29,386
Canada	15,035	10,314	23,071	24,880	25,246	23,999	25,256	30,313	28,423
U.S.	929	687	210	178	341	498	267	743	963
Others	2	0	0	0	0	0	0	0	0

Source: Mexican Ministry of Economy.

Mexican imports of lentils from the world
(Million US$)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	7.0	4.5	9.2	8.0	8.5	9.5	9.7	9.4	9.2
Canada	6.5	4.2	9.1	7.9	8.4	9.3	9.5	9.1	8.9
U.S.	0.4	0.3	0.1	0.1	0.1	0.2	0.1	0.2	0.2
Others	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.1

Source: Mexican Ministry of Economy

Dry Peas

Mexico produces around 40,000 tonnes of dry peas per year.

Around 75% of the Mexican consumption of dry peas is covered by domestic production and the remaining 25% is imported.

Canada supplies around 75% of the total Mexican imports of dry peas, which in 2002 reached 12,917 tonnes with a value of 4.0 million US$.

Since the implementation of NAFTA, the Canadian exports of dry peas to Mexico have increased 70%, moving from 4,713 tonnes with a value of 1.2 million US$ in 1994 to 7,988 tonnes with a value of 2 million US$ in 2002.

Mexican imports of dry peas from the world
(Metric Tonnes)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	8,445	7,838	16,839	12,016	15,038	12,528	11,982	16,432	12,917
Canada	4,713	5,511	14,654	9,875	10,822	8,362	7,063	12,430	7,988
United States	3,671	2,193	2,158	2,074	4,136	4,119	4,908	4,002	4,902
Others	61	135	27	66	81	47	11	0	27

Source: Mexican Ministry of Economy

Mexican imports of dry peas from the world
(Million US$)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	2.5	2.2	4.6	3.7	4.1	3.3	3.2	3.7	4.0
Canada	1.2	1.4	3.9	2.8	2.5	1.7	1.6	2.4	2.0
United States	1.2	0.8	0.8	0.8	1.6	1.6	1.7	1.3	1.8
Others	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.2

Source: Mexican Ministry of Economy

Chickpeas

Mexico is a strong producer of chickpeas (around 250,000 tonnes per year), so more than 90% of the domestic demand is covered by domestic supplies.

The Mexican imports of these products are minimum (953 kgs. in 2002) and Canada does not register any participation on them.

Canary seed

The Mexican consumption of canary seed has been growing over the last years. During the period 1994-2002 it jumped from 36,570 tonnes to more than 50,000 tonnes.

Almost 100% of the canary seed consumed in Mexico originates from Canada.

From 1994 to 2002, the Canadian exports of canary seed to Mexico showed a real growth of 50%, moving from 33,680 tonnes with a value of 14.1 million US$ to 50,280 tonnes with a value of 28.8 million US$.

Mexican imports of canary seed from the world
(Metric Tonnes)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	36,191	37,341	46,239	42,245	50,449	48,793	54,072	53,229	51,011
Canada	33,680	36,753	45,570	41,774	50,036	48,645	53,908	52,713	50,280
U.S.	1,171	567	669	471	413	147	164	490	731
Others	1,339	21	0	0	0	0	0	26	0

Source: Mexican Ministry of Economy

Mexican imports of canary seed from the world
(Million US$)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	15.3	12.5	20.7	12.7	15.5	12.7	14.2	17.1	29.2
Canada	14.1	12.3	20.4	12.6	15.4	12.6	14.2	16.9	28.8
U.S.	0.5	0.2	0.3	0.1	0.1	0.0	0.0	0.1	0.4
Others	0.7	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0

Source: Mexican Ministry of Economy.

Mustard seed

Over the last few years, the Mexican imports of mustard seed have remained stable at an average of 1,200 tonnes.

Canada dominates this market with a share of around 97% in the total Mexican imports of mustard seed.

Mexican imports of mustard seed from the world
(Metric Tonnes)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	1,326	860	1,147	1,109	1,365	1,356	1,173	1,373	1,363
Canada	1,271	831	1,138	1,077	1,353	1,355	1,164	1,327	1,167
U.S.	49	27	4	29	1	1	1	44	195
Others	6	2	6	2	11	0	7	1	1

Source: Mexican Ministry of Economy.

Mexican imports of mustard seed from the world
(Million US$)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	0.6	0.4	0.6	0.7	0.8	0.7	0.5	0.7	1.3
Canada	0.5	0.4	0.6	0.7	0.8	0.7	0.5	0.6	1.0
U.S.	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.1	0.3
Others	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0

Source: Mexican Ministry of Economy.

Buckwheat

Currently, there is no demand for buckwheat in Mexico. Actually, Mexico does not register any imports for this product.

Sunflower seed

Mexico has a very small production of sunflower seed. Therefore, most of the consumed sunflower seed in Mexico is imported.

After an historic record in 1996 (164,699 tonnes) the Mexican imports of sunflower seed have been decreasing to reach 9,133 tonnes in 2002.

Since the implementation of NAFTA, the Canadian share in the total Mexican imports of sunflower seed has grown from 1% in 1994 to 20% in 2002.

The U.S. has become the main provider of sunflower seeds to Mexico, over other historic suppliers such as Argentina and Uruguay.

Mexican imports of sunflower seed from the world
(Metric Tonnes)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	46,228	59,587	164,699	127,084	45,492	10,718	21,780	17,077	9,133
Canada	413	124	111	259	683	3,483	3,039	4,102	1,762
U.S.	7,304	9,910	6,408	22,727	22,309	7,235	18,742	12,974	7,350
Others	38,510	49,553	158,180	104,097	22,500	0	0	1	21

Source: Mexican Ministry of Economy.

Mexican imports of sunflower seed from the world
(Million US$)
Country	1994	1995	1996	1997	1998	1999	2000	2001	2002
World	16.3	18.5	52.0	37.3	13.9	5.7	7.5	6.5	4.5
Canada	0.3	0.1	0.1	0.1	0.3	1.7	1.5	1.8	0.8
U.S.	3.9	4.3	3.4	7.8	7.6	3.9	6.0	4.7	3.6
Others	12.2	14.2	48.5	29.3	5.9	0.0	0.0	0.0	0.0

Source: Mexican Ministry of Economy.

It is important to note that in general the exports of Canadian pulses and special crops to Mexico were affected last year by the droughts in Canada. However, with better climatic conditions the exports of these products to Mexico have being recovering during the first few months of this year.

Market Access Conditions for Canadian Pulses and Special Crops

Under NAFTA, most of the Canadian pulses and special crops including dry peas, chickpeas, lentils, sunflower seed, mustard seed, canary seed, safflower seed, faba beans and buckwheat have duty free access to the Mexican market. The only pulses that still do not have duty free access to Mexico are dry beans, which are subject to a Tariff Rate Quota (TRQ) that will be eliminated until 2008.

The TRQ established by Mexico to import beans from Canada is increased by 3% each year and the imports made under this TRQ are duty free. For 2003, the import quota for Canadian beans is 1,957 metric tonnes with an out-of-quota duty of 58.7%. This out-of-quota duty will reach 0% on January 1, 2008.

TRQ established by Mexico under NAFTA
for imports of Canadian beans
Year	Quota	In quota	Out-of-quota
	(tonnes)	Duty	Duty
1994	1,500	0%	133.40%
1995	1,545	0%	127.80%
1996	1,591	0%	122.30%
1997	1,639	0%	116.70%
1998	1,688	0%	111.20%
1999	1,739	0%	105.60%
2000	1,791	0%	93.90%
2001	0%	82.10%
2002	1,900	0%	70.40%
2003	1,957	0%	58.70%
2004	2,016	0%	46.90%
2005	2,076	0%	35.20%
2006	2,139	0%	23.50%
2007	2,203	0%	11.80%
2008	- - -	0%	0.00%

The TRQ for Canadian dry beans is allocated by the Mexican Ministry of Economy through an auction system. The first auction (652.3 tonnes) for the 2003 TRQ of beans was held on May 9, 2003. The rest of the TRQ (1,304.7 tonnes) will be auctioned on July 1, 2003.

If Canadian exporters want to export beans to Mexico they have to make sure that their Mexican importers have a permit to import beans under the TRQ, in order to get the 0% duty.

The phytosanitary requirements for the importation of pulses and special crops are contained in the Mexican Official Standard: NOM-028-FITO-1995. In this NOM it is established that all imports of pulses and special crops have to be fumigated at origin with aluminum phosphorus or at the point of entry with methyl bromide.

The fumigation in Canada is difficult in the winter months and when it is done at the border causes delays and additional costs. NOM-028 is under its five-year review, so in this context, Canada will propose to Mexico the discussion of alternative certification procedures to eliminate the need for mandatory fumigation.

It is important to note that the Canadian exports of beans to Mexico have been affected during this year by non-tariff barriers established by the Mexican authorities. In January, 2003, the Mexican government imposed a temporary ban on imports of Canadian and U.S. beans because of the supposed triangulation of Peruvian and Chinese beans that entered into Mexico as Canadian and U.S. beans. There were also concerns expressed by the Mexican Ministry of Agriculture (SAGARPA) about under invoicing. However, there was never any conclusive evidence of this.

The Canadian government made several representations with the Mexican authorities to resolve the issue, who indicated that besides the triangulation and under invoicing, they were also concerned about certain pests that could be present on the imported beans. On April 04, 2003, SAGARPA lifted the ban on imports of beans but published an Emergency Mexican Official Standard (NOM), which established new phytosanitary requirements for imported beans including fumigation at origin and certain quality requirements.

After several discussions, on May 23, 2003 SAGARPA announced the cancellation of the Emergency NOM and established new phytosanitary requirements for the importation of beans. In the new requirements SAGARPA established the option of fumigating the beans at the point of entry and the quality requirements were eliminated. CFIA has confirmed they can certify the new phytosanitary requirements established by Mexico, so exports of Canadian beans to Mexico can be resumed.

It is important to note that the problem of beans was more of a political kind, since it is an important crop for Mexico and producers claim they are being adversely affected by imports.

Key players in the Mexican Pulse and Special Crops Market

The main distribution center of special crops in Mexico is the "Central de Abastos". The Central de Abastos extends over 2,000 has. and it is estimated that each day around 300,000 buyers source their agri-food products in this distribution center.

The Central de Abastos is composed of about 6,000 wholesalers, which sell around 22,000 tonnes of agri-food products with a value of 20 million US$ on a daily basis.

It is estimated that around 70% of the total sales of special crops in Mexico (including imports) are negotiated in this distribution center.

Around 90% of the Mexican importers of beans are located in the Central de Abastos.

Another key player in the Mexican special crops market is the Mexican Bean Council (MBC). The MBC represents about 34 thousand producers of beans that generate close to 300 thousand tonnes of beans.

Among the main objectives of the MBC are to foster a competitive production, encourage an efficient commercialization of beans, promote financing for the production of beans, generate value added to the Mexican beans through industrialization and promote the integration of bean producers.

Some of the main importers of pulses and special crops in Mexico are:

Intercontinental de Mexico, S.A.
Contact: Sr. Jorge Uriarte, General Manager
Filadelfia No. 182-401
Nápoles 03810
Tel. / Fax. (52) 55-5682-36-09
(52) 55-5682-34-20
E-mail: jorgeuriarte@mexis.com

DIGRAN'S, S.A.
Sr. Claudio Alvarez and Sr. Isidro Garcia
Purchase Manager
Enrique Dunant No.20
Col. El Partidor
C.P. 54879 Cuautitlán, Edo. de México
Tels. (52) 55-5872-2911, (52) 55-5872-2886, (52) 55-5872-23-52
Fax: (52) 55-5872-48-56
E-mail. digrans@prodigy.net.mx
Brand. San Lazaro

Surtidora Abarrotera, S.A. de C.V.
Contact. Sr. Martín Sámano Vega
General Manager
Central de Abastos Bodega E-33
Zona Urbana Ejidal
C.P. 09040, México, D.F.
Email. surtabar@prodigy.net.mx
Phone. (52) 55-5694-0081
(52) 55-5694-0749
Fax. (52) 55-5694-0144
Products. Spices. Rice, lentils, linseed

Comercial Bojorge
Contact. José Antonio Bojorge Ruíz
Central de abastos, Bodega D-18
Col. Ejidos del Moral, Iztapalapa
México, D.F. C.P. 09040
Phone. (52) 55-5694-2080, (52) 55-5694-4693
Fax. (52) 55-5694-2080
Email. jabojorge@iserve.net.mx

Productos Verde Valle, S.A. de C.V.
Contact. Sr. Manuel Flores y/o Gerardo Ochoa
Purchase Manager
Vallarta 5683
Sector Juárez
Guadalajara, Jal. México 45010
Phone : (52) 33-3627 0700 ext. 250 and 152
Fax : (52) 33-3627 0704
Email. gerardoot@verdevalle.com.mx

Empacadora la Merced S.A. de C.V.
Contact. Sr. José Fco. del Cojo Cesari
General Manager
Av. Central No. 162 esq. Estaño
Fracc. Industrial Esfuerzo Nacional
Xalostoc, C.P. 55320
Phone. (52) 55-5788-2088
Fax. (52) 55-5569-1952
Email. emlame_ventas@hotmail.com

Bodega de Granos el Alazan y el Rocio, S.A. de C.V.
Contanct: Sr. Jesús Garcia
Av. Principal #3 Central de Abastos
Tel. (52) 55-5694-1620
Wholesaler of beans and other grains.

Corporacion Rural de Granos, S.A. de C.V.
Contact. Enrique González Cenciero, General Manger
Calle 2 Manzana 3 Lote 5 Bodegas Zona de Transferencia
Col. Cetral de Abastos, Del. Iztapalapa,
C.P. 09040
Mexico, D.F.
Tel. / Fax. (52) 55-5694-4554, (52) 55-5694-5300

Magaña Sirera S.A.
Contact. Mr. Phillipe Nottebhom
Chimalcoyolt No. 83
Col. Toriello Guerra
C.P. 14050, México, D.F.
Tel. (52) 55-56065580, (52) 55-56045455
Fax. (52) 55-56066840
E-mail: maganasirera@iserve.net.mx

Mamá Coneja Impex, S.A. de C.V.
Contact. Sergio A. Rábago Agredano
International Trade Manager
Address. Calle 6 Oriente No. 2299
Mercado de Abastos, Col. Las Torres
C.P. 44530, Guadalajara, Jalisco
México
Phone. (52) (33) 36714137
(52) (33) 36712315
Fax. (52) (33) 36713696
mcimpex@megared.net.mx
www.mamaconeja.com.mx

Industria Agrícola Carredana, S.A. de C.V.
Contact. Juan Carlos Abascal
General Manager
Address. Calle de la Cazuela No. 28
Colonia Ejidos de Moral
México, D.F. México C.P.09040
Phone : (52) 555694-9094, (52) 555694-6694 (52) 555694-6634
Fax : (52) 5694-9154
pasiega@mail.intercent.com.mx
pasmarc@prodigy.net.mx
www.lapasiega.com.mx

Surtidora de Viveres
Contact. Jorge Figueroa
Owner
Address. Portal de las Flores No. 5, Col. Ortiz Tirado, C.P. 09020
Phone. (52) 55 56940518
(52) 55 56942844
(52) 55 56946609
Fax. (52) 55 5694-5077
commexab@avantel.net
Import beans, lentils canary seed, pop corn, sawflower

Granos Selectos, S.A. De C.V.
Contact. Luis Montemayor.
General Manager
Av. P.C. Negrete No. 1313
Col. Industrial C,P.64440
Monterrey, N.L.
Phone. (52)(81) 8375-5627
(52)(81) 8375-5689
(52)(81) 8374-3825
(52)(81) 8374-6203
Fax: (52)(81)8375-4661
lemontemayor@graselrindemas.com
Beans, lentils, corn, porpcorn and pulse importer and packer.

Cia. General De Viveres, S.A. De.C.V.
Contact. Lic. Gilberto Montemayor
General Manager
Av. Díaz Ordaz No. 419 Nte.
Fracc. Futuro Nogalar , C.P. 66480
San Nicolás de los Garza, N.L.
Phone. (52) (81) 8353-8363,
(52) (81) 8353-8203
Fax. (81) 8353-8991
gil@cigevisa.com.mx
www.cigevisa.com.mx
Beans importer and grain packer

Drafted: Alejandro Ruiz
Approved: Kim O'Neil

Date Modified: 2003-07-07

Important Notices