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How Mexico's Dairy Industry Has Evolved Under the NAFTA - Implications for U.S. Dairy Exporters and U.S. Investors in Mexico's Dairy-Food Businesses

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  • Dobson, William D.
  • Proctor, Richard

Abstract

This Discussion Paper shows that the demand for imported dairy products will continue to be strong in Mexico, especially after the 2001-2002 recession ends. However, Mexico's dairy markets have matured under the NAFTA. As part of the maturity, a larger number of strong domestic firms have emerged and powerful European multi-nationals have increased dairy product sales in Mexico. In addition, the expansion of U.S. exports of fluid milk, yogurt, dried whey, and lactose to Mexico will be slow in near future because U.S. market shares of imports of these products are already large. Thus, Mexico's dairy markets no longer represent "low hanging fruit" (if they ever did) for U.S. dairy exporters and direct investors

Suggested Citation

  • Dobson, William D. & Proctor, Richard, 2002. "How Mexico's Dairy Industry Has Evolved Under the NAFTA - Implications for U.S. Dairy Exporters and U.S. Investors in Mexico's Dairy-Food Businesses," Discussion Papers 37628, University of Wisconsin-Madison, Babcock Institute for International Dairy Research and Development.
    • Handle: RePEc:ags:uwmbdp:37628
    DOI: 10.22004/ag.econ.37628
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    File URL: https://ageconsearch.umn.edu/record/37628/files/2002-1.en.pdf
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    References listed on IDEAS

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    1. Hallberg, Milton C. & Cranney, James R. & Smith, Stephen M. & Valdes, Constanza M., 1992. "The Mexican Dairy Economy and Potentials of Liberalized Trade for the U.S. Dairy Industry," AE & RS Research Reports 257725, Pennsylvania State University, Department of Agricultural Economics and Rural Sociology.
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    Cited by:

    1. Dobson, William D., 2002. "Would U.S. Dairy Firms Increase Long-Term Profits By Becoming Bigger Exporters and Bigger Investors in Foreign Dairy-Food Businesses?," Marketing and Policy Briefing Papers 12735, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    2. Dobson, William D., 2003. "Developments in the Dairy Industries of Mexico, Central America, Argentina, and Brazil -- Implications for the U.S. Dairy Sector," Discussion Papers 37616, University of Wisconsin-Madison, Babcock Institute for International Dairy Research and Development.
    3. Dobson, William D., 2006. "Developments In World Dairy Markets, 2002-2006--Implications For The U.S. Dairy Industry," Discussion Papers 37384, University of Wisconsin-Madison, Babcock Institute for International Dairy Research and Development.
    4. Ramirez, Miguel A. & Jones, Kraig M. & Arellano-Vaca, Juan Francisco & Raper, Kellie Curry, 2003. "Estimating Import Demand In The Mexican Cheese Market," Staff Paper Series 11571, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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