MEXICO: ESTIMATES OF SUPPORT TO AGRICULTURE

 

Contact person: Jesús Antón

 

Email: jesus.anton@oecd.org

 

Tel :

(33-1) 45 24 17 86

Fax :

(33-1) 45 24 18 90

 

DEFINITIONS AND SOURCES

 

Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

 

 

Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are only calculated for commodities produced in the country within a common set of commodities (wheat, maize, barley, oats, rice, sorghum, soybeans, sunflower, rapeseed, sugar, milk, beef and veal, pigmeat, poultrymeat, sheepmeat, wool and eggs); provided that the value of production of that commodity exceeds 1 per cent of the total value of production in the country concerned. Market Price Support (MPS is also calculated for beans (Frijol), tomatoes and coffee (café verde) in order to reduce the error in extrapolating MPS to all agricultural commodities. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

 

Producer Support Estimate (PSE) by commodity in Table 3 is also calculated only for commodities produced in the country within the common set of commodities. All data sets in the calculation of PSE by commodity come from Tables 1 and 2 where definitions are included.

 

Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

 

Fiscal year: Calendar year.

Crop years: Each crop year covers two crop seasons. For example crop seasons Autumn-Winter (AW) 1993/94 and Spring-Summer (SS) 1994/94, of the crop year 1993/94, are attributed to year 1994 for PSE calculation purposes.

 

Table 2. Market price support and consumer support estimate by commodity

 

Definitions:

 

1. Level of production

Wheat (trigo grano), Maize (maíz grano), Barley (cebada grano), Sorghum (sorgo grano), Rice (arroz palay), Soyabeans (soya), Dried beans (frijol), Tomatoes (jitomate) and Coffee (café verde): Total farm level production during the crop year [1].

Sugar: Total level of production of sugar cane (cana de azucar) and refined sugar during the crop year [1], [2] and [3]. A ratio sugar cane / refined sugar is calculated from these series.

Milk (leche de bovino): Total level of production in litres as reported by SAGAR [4], multiplied by a coefficient of 1.031 / 1000 to express in tonnes.

Beef and Veal (carne de bovino en canal) and Pigmeat (carne de porcino en canal): Gross indigenous production expressed in carcass weight, including exports of live animals in carcass weight equivalent [4], minus imports of live animals in carcass weight equivalent [5].

Poultrymeat (aves): Gross indigenous production, live weight (chicken and turkey) expressed in carcass weight [4].

Eggs (huevo): Total egg production in tonnes [4].

 

2. Producer price

 

Wheat: Weighted average of administered prices of wheat (precio piso de bodega) in the AW and SS seasons [1]. Since 2001 there are not administered prices and price payed to producer is used (Precios de granos y oleaginosas pagados al productor) is used [4].

Maize: Average of administered prices of white maize in AW and SS seasons [6]. For 1990-1995 yellow maize price was also considered in the weighted average (5% of total). Since 2001 there are not administered prices and price payed to producer is used (Precios de granos y oleaginosas pagados al productor) is used [4].

Barley: Average of administered prices for AW and SS seasons [7]. Since 2001 there are not administered prices and price payed to producer is used (Precios de granos y oleaginosas pagados al productor) is used [4].

Sorghum: Average of administered prices for AW and SS seasons [7]. Since 2001 there are not administered prices and price payed to producer is used (Precios de granos y oleaginosas pagados al productor) is used [4].

Rice: Average of administered prices for paddy rice for AW and SS seasons [7]. Since 2001 there are not administered prices and price payed to producer is used (Precios de granos y oleaginosas pagados al productor) is used [4].

Soyabean: Average of administered prices for paddy rice for AW and SS seasons [7]. Since 2001 there are not administered prices and price payed to producer is used (Precios de granos y oleaginosas pagados al productor) is used [4].

Raw sugar: Until 1994, annual average of monthly wholesale price of raw sugar (mascabado) from Camara Nacional de Industrias Azucareras; since then "precio de referencia de azucar base standard KABE from COAZUCAR with a correction coefficient from an average of overlapping years * 0.926.

Sugar cane: Average producer price of sugar cane, [2] (until 1989) and [3] since 1990.

Milk: Average price to producers (Precios promedio al productor) per liter multiplied by (1000/1.031) to convert into per tone [8].

Beef and veal: Weighted average wholesale price carcass equivalent (Precio medio ponderado en canal), reduced by a producer / wholesale margin of 30%.[1] and [8].

Pigmeat: Weighted average wholesale price carcass equivalent (Precio promedio ponderado en canal) reduced by a wholesale / producer margin of 30% [7].

Poultrymeat: Weighted average price carcass equivalent (Producer price of processed poultry (“rosticero”) provided by SAGAR [1] from the "Union Nacional de Avicultores”.

Eggs: Producer price of white eggs provided by SAGAR from the "Union Nacional de Avicultores" [1].

Dried beans: Average of prices payed to producers for AW and SS seasons [4].

Tomatoes: Average producer price in rural areas (precio medio rural) [1] corrected by a producer / wholesale margin of 15% [16].

Coffee: Average producer price in rural areas (precio medio rural) [1].

 

3. Level of consumption

 

Wheat (trigo grano), Maize (maíz grano), Barley (cebada grano), Sorghum (sorgo grano), Rice (arroz palay), Soyabeans (soya), Rice (arroz palay), Dried beans (frijol) and Tomatoes (jitomate): Apparent consumption defined as production plus imports minus exports [4] and [9].

Sugar: Sum of industrial and household consumption of refined sugar [10] (up to 1993) [3].

Milk: Apparent consumption defined as production plus imports minus exports [1] and [4].

Beef and veal, pigmeat, poultrymeat and eggs: Domestic apparent consumption in carcass weight equivalent, defined as gross indigenous production plus total imports minus total exports [5] and [7].

Coffee: Apparent consumption defined as production plus imports minus exports [17].

 

4. Reference prices

 

Wheat: Simple average of the US hard red winter (HRW) No 2 [11] and the US soft red winter (SRW) No 2 [12]. A transportation cost to Gulf of 11 US$/t. is added.

Maize: US export price of yellow maize [11]. Weighted average of yellow and white maize with a 95% weight to white maize, and the white maize price being calculated by adding a 20% quality premium to the US export price of yellow maize. A transportation cost to Gulf of 11 US$/t. is added.

Barley: Canadian malting barley price as SS2R designated barley [19] plus transportation cost to gulf of 14 US$ pert tonne.

Sorghum: US export price [11]. A transportation cost to Gulf of 11 US$/t. is added.

Rice: Until 1993, Gulf medium grain price [13]; since 1994, Fob Houston long grain [11], multiplied by a factor correction of 0.89 from an average of overlapping years, and converted from milled rice price into paddy equivalent price by multiplying by a technical coefficient of 0.66 [7] until 1993, and 0.5 from 1994 onwards. A transportation cost to Gulf of 11 US$/t. is added.

Soyabean: US export price Gulf [11]. A transportation cost to Gulf of 11 US$/t. is added.

Sugar: World Raw sugar price, contract 11, FOB Caribbean [14].

Milk: Farm gate price of milk, calendar year, actual fat content (x%) in New Zealand, plus transport cost for butter and skimmed milk powder in milk equivalent (56kg and 82kg per tonne of milk, respectively) from New Zealand to Mexico (Pnz), adjusted to fat content (y%) in Mexico [15], the reference price being (Pnz)*[(x%)+(y%)]/2*(x%).

Beef and veal: Australian production price plus transport costs from Australia to US. Data from Australian PSE database.

Pigmeat and poultrymeat: US producer price minus unit export subsidies (see US section) plus constant transport costs of 80$ per tonne.

Eggs: US producer price minus unit export subsidies (see US section) plus transport costs to Canada (75C$ constant).

Dried beans: United States Pinto dry beans [11].

Tomatoes: Unit export value to the United States [18].

Coffee: United States composite green price [11].

 

Sources:

 

[1] Secretaria de Agricultura, Ganaderia y Desarrollo Rural (SAGAR): Servicio de Informacion y Estadistica agroalimentaria y pesquera".

[2] SAGAR: "Boletín estadístico azucarero".

[3] Comité de la Agroindustria Azucarera (COAZUCAR).

[4] Informes del Gobierno.

[5] OECD: AGLINK Database.

[6] Data directly provided by CONASUPO.

[7] Smin-CEA-SAGAR.

[8] Confederacion Nacional de Ganaderos (CNG): "Mexico ganadero".

[9] SAGAR: "Historical Agricultural Series: 1925-1997".

[10] Sexto Informe del Gobierno. 1994.

[11] USDA Outlook.

[12] International Wheat Council: "World Grain Statistics".

[13] FAO. Commodity Price statistics.

[14] USDA Sugar and Sweetener Outlook.

[15] Liconsa.

[16] Turkey PSE database.
[17] Report from the International Coffee Organisation.

[18] Secretariá e Hacienda y Crédito Público.

[19] Canadian Cereals and Oilseeds Review.