2006 International Sweetener Colloquium

1
2006 International Sweetener Colloquium
Session IX MEXICO

• Jose Pinto Mazal
• February 7th, 2006
• Florida, U.S.A

2
Mexican Industry

• 58 mills operating in 15 states, (major
  producers Veracruz 39.7, Jalisco 12.13, San
  Luis Potosí 9.63 and Oaxaca 5.79)
• Economic impact more than 2.5 billion dollars.
• Directly involves over 400,000 families
• 157,918 cane growers
• 176,074 cane cutters and field workers
• 28,243 freight workers
• 23,325 unionized factory workers
• 16,639 white collar non-unionized personnel
• 2.3 million mexicans depend on the sugar sector.

Source Cámara Nacional de la Industria Azucarera
y Alcoholera
2004/2005 Harvest
3
Mexico Geographical Location of Sugar Mills
VERACRUZ 22 JALISCO
6 OAXACA 4 S.L.P 4
MICHOACAN 3 SINALOA
3 TABASCO 3 NAYARIT
2 PUEBLA 2 CHIAPAS
1 MORELOS 2 TAMAULIPAS 2 Q.
ROO 1 CAMPECHE
2 COLIMA 1 TOTAL 58
Source Cámara Nacional de la Industria Azucarera
y Alcoholera
4
Ownership of the Mexican Sugar Industry
60's - 80's
90's - until September 2001
20
2
80
January 2006
98
62
38
Government owned
Privately owned
Source Cámara Nacional de la Industria Azucarera
y Alcoholera
5
Mexican Industry
2004 / 2005 Harvest Mexican Sugar Production
5.8 million metric tons standard sugar base
Source Comité de la Agroindustria Azucarera
Equivalent to 6 million metric tons raw value
Private sector 3.4 million tons from 35
factories
Government trust 2.4 million tons from 23
factories.
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NAFTA Sugar Agreement
ACCESS
USA/MEXICO NAFTA
Years 1 - 6
(1994 - 99)
Greater of 7,258 metric tons or
México not surplus producer
"other country" share of TRQ
ACCOMPLISHED FROM YEAR 1
México surplus producer
25,000 metric tons.
Years 7 - 14
( 2000-07 )
Greater of 7,258 metric tons or "other country"
share of TRQ
México not surplus producer

Year 7 150,000 metric tons Years 8 - 14 110 of
previous year.

ACCOMPLISHED FROM YEAR 2
México surplus producer two
All Mexican surplus production
consecutive years
Year 8
(2001)
Surplus Producer Definition
Sugar production minus sugar
consumption
U.S.- Mexican Regional Market.
Year 15
(2008)
Same internal supports, external
tariffs. Rules of origin remain
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U.S. Duties on Out-of-Quota (Tier II) Mexican
Imports under NAFTA
Source NAFTA
8
Mexico Sugar Industry Statistical Data
Sugar Production (Standard Sugar)
Tons
Source Cámara Nacional de la Industria Azucarera
y Alcoholera Estimate
9
Mexico Sugar Industry Efficiency Factors
Total Downtime
Source Cámara Nacional de la Industria Azucarera
y Alcoholera Estimate
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Mexico Sugar Industry Efficiency Factors
Oil per Ton of Sugar Cane
Lts.
Source Cámara Nacional de la Industria Azucarera
y Alcoholera Estimate
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Source Sugar and Sweetner Outlook, september
29,2005 WASDE- 430 14 U.S Sugar supply and
Use.
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MEXICO Sugar and HFCS Production
1,000 tons, raw value
1,000 tons, dry weight
Source Camara Nacional de la Industria Azucarera
y Alcoholera
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(No Transcript)
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Thank you!!