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Maize ......... .................................................................. .......................................................................................... ................................................ ............................................................ ......... ALMER Almacenadora Mercader Asociación Mexicana de Producción Animal y Seguridad Alimentaria, A.C SEDARPA Secretaría de Desarrollo Rural y Agrícola y Pecuario (Veracruz) 1.1 2.1 distance and addresses the question of the comparative advantage of intensive (high capital) versus extensive (low capital) agricultural production . In contrast, early literature on ünenhe bid rent paradigm and FT theory. A discussion of the commodity chain literature and its application to the Mexican context follows. 2.2 2.2.1 Isolated State (von Thünen 1966) and is a theory of the conditions that lead to capital intensification of agricultural production. üü ünen himself included forestry in the second ring, just after the intensive margin, while extensive agricultural systems occupied a third zone . It seems that, in Thünen's day, price conditions for lumber and fuelwood were more favorable near the city than they were for extensive cropping systems (Chisholm, 1962). 2.2.2 án Peninsula, out-migration and non-agricultural labor market opportunities appear to be driving a decline in deforestation. By contrast, out-migration does not appear to promote FT in the Peruvian Amazon. Klooster and López et al. provide probably the most convincing case of a regional FT in Mexico. Here, relocation of labor to off-farm activities, and to some extent, rural out-migration, induced widespread agricultural abandonment. The new economy depends on forest products, however, so forest covers continue to decline amid sparing of land from agriculture. 2.3 As others have argued, global food production provides an essential context for investigating LC processes . The dissertation research builds on this insight by applying a commodity chain framework to comprehend the impacts of globalization on both deforestation and forest transition. Changes in forest characteristics that follow in the wake of neoliberal reform are instances of the neoliberalization of nature . Such a conceptualization departs from the classical Thünian approach by focusing on corporate actors capable of responding rapidly to dynamics in the world economy. 2.4 1 1 , a pattern consistent with the "Hollow Frontier" hypothesis. Diversification of agricultural activities towards rural non-farm employment seems to be another important trend in rural Mexico, but again with mixed effects on LC . 2.5 Thünian 3.1 3.2 3.2.1 3.2.2 2 2 3.2.3 3.2.4 3.2.5 4.1 4.1.1 4.1.2 4.2 4.3 4.4 4.4.1 4.4.2 5.1 5.1.1 ne of the most contentious issues of neoliberal reform was its effects on domestic maize production and trade. Serious concerns about the deleterious effects of trade liberalization on Mexico's food security and living conditions for smallholders, in particular for maize producers, were raised by critics of neoliberal reform . In fact, most analysts predicted falling domestic maize production. For example, Yúñez-Naude estimated that a 40% reduction in maize prices would result in a decline in maize output in smallholder communities ranging between 18% and 29%, depending on the productivity gains due to liberalization. Levy and van Wijnbergen estimated a displacement of 492,000 to 692,000 jobs and a 20% decline in output due to liberalization. Distinguishing between rainfed and irrigated lands, they concluded that producers with irrigation would benefit from NAFTA-based liberalization, with rents increasing between 2% and 25%. In one of the best-known assessments, de Janvry et al. inferred different effects for producers engaged in the market and subsistence producers. Relative isolation from the market and high transaction costs would immunize producers from the price shocks of liberalization. On the other hand, large capitalized producers could absorb the shock by shifting to other more profitable crops or by expanding production. The most vulnerable producers, then, would be those producers engaged in the market but with limited assets and little capital. This group comprised half of all maize producers and accounted for two-thirds of this grain output, thus implying a large effect on domestic maize production. by volume, corn is now the most important commodity traded between the US and Mexico . With an average of 10 million metric tons (MT) of corn imported every year since 2010, Mexico is now one of the largest grain markets for US producers, second only to Japan. Note that from this point on, I use the word corn to refer to the yellow maize variety which represents 97% of all maize imports, and maize as a generic designation for all other varieties produced in Mexico. Why did maize production increase despite declining prices and increasing imports? 34 3 4 5.1.2 5 5 6 7 6 7 5.1.3 8 9 8 9 10 10 11 11 5.1.4 12 12 5.1.5 5.2 5.2.1 Maize 5.2.2 5.2.3 13 13 5.2.4 5.3 5.3.1 5.3.2 5.3.3 You are being asked to participate in a research study. Researchers are required to provide a consent form to inform you about the research activities, to convey that participation is voluntary, to explain risks and benefits of participation, and to empower you to make an informed decision. You should feel free to ask the researchers any questions you may have. Project title: Linking land change and commodity chains in a globalized world: the case of Mexico Researcher contact information Yankuic Galvan (PhD Candidate) Department of Geography, Michigan State University Geography Building 673 Auditorium Road East Lansing, MI 48824 Cell phone: Current work address: Department of Geography, University of Florida 3138 Turlington Hall Gainesville, FL 1. PURPOSE OF RESEARCH You are being asked to participate in a research study that aims to understand the relationship between land use and beef-cattle industry transformations under free trade in Mexico. You have been selected as a possible participant in this study because you are a representative of ___________ (company name) with significant experience in the feedlot industry. From this study, the researchers hope to learn how beef-cattle supply chains have evolved over the last 30 years (e.g., in terms of coordination and logistics, regulatory framework, production techniques, etc.) and how those transformations within the industry impact where and how beef-cattle are produced. In addition, we are investigating how shifts in production locations over the last 30 years have affected deforestation and afforestation patterns in Mexico. Your participation in this study will not exceed 90 min. 2. WHAT YOU WILL DO During the interview, you will be asked to provide information or your perspective through a set 3. POTENTIAL BENEFITS You will not directly benefit from your participation in this study; however, your participation may contribute to better understanding of the relationship between the evolution of the industry and the transformation of the environment. 4. POTENTIAL RISKS There are no foreseeable risks associated with participation in this study. All information disclosed during the interview will remain confidential. 5. PRIVACY AND CONFIDENTIALITY All conversations during the interview will be recorded, unless you request otherwise. The data for this project will remain confidential. All information which can reveal your identity will be removed from digital recordings and transcripts, and each informant will be identified only by a randomly generated code. These files will be encrypted and stored in my personal computer and a backup in a secure remote server. Only my adviser and I will have access to the information collected. Note, however, that under very special circumstances, such as a court order, we may have to disclose information about you. The results of this study may be published or presented at professional meetings, but the identities of all research participants will remain anonymous. Please, indicate below whether you accept or decline audiotaping of the interview. Yes, I agree to allow audiotaping No, please do not audiotape Initials____________ 6. YOUR RIGHTS TO PARTICIPATE, SAY NO, OR WITHDRAW Participation is voluntary. Refusal to participate will involve no penalty or loss of benefits to which you are otherwise entitled. You may discontinue participation at any time without penalty or loss of benefits to which you are otherwise entitled. You have the right to say no. You may change your mind at any time and withdraw. You may choose not to answer specific questions or to stop participating at any time. 7. COSTS AND COMPENSATION FOR BEING IN THE STUDY You will not receive money or any other form of compensation for participating in this study. 11. CONTACT INFORMATION If you have concerns or questions about this study, such as scientific issues, how any part of it is done, or to report injury, please do not hesitate to contact me (Phone: US 517 802 8494, email: ). If you have questions or concerns about your role and rights as a research participant, would like to obtain information or offer input, or would like to register a complaint about this study, you Protection Program at 517-355-2180, Fax 517-432-4503, or e-mail irb@msu.edu or regular mail at 207 Olds Hall, MSU, East Lansing, MI 48824. 12. DOCUMENTATION OF INFORMED CONSENT. Your signature below means that you voluntarily agree to participate in this research study. ____________________________________ ____________________________ Signature Date You will be given a copy of this form to keep. Organization level interview questions Segment: ___________________ Date: _____________ Organization information Organization: _____________________ No. Members: _____________________ Founding year: ____________________ Perceived changes within the industry§ after NAFTA 1. From your perspective, what are the main changes within the * _________ industry since the enactment of free trade policies in the 1990s? (new technologies and input access, logistics, learning and human capital, markets and marketing, etc.) 2. In what ways have free trade policies been beneficial for the industry? In what ways have they been harmful? Which sectors/producers within the industry have benefited and which ones have suffered the most with free trade policies. 3. How has the role of the organization changed in response to free trade policies? If the organi-zation was founded after the 1990s, in what ways does the organization respond to or is con-sistent with the new economic environment? Access to markets 4. Which are the most important markets/customers (supermarkets, feedlots, milling industry, food processing industry, etc.)? 5. What are the most important factors that allow access to those markets? 6. Are all members equally successful in those markets? Which members are the most success-ful, which ones have more problems? Does the location of the members determine how suc-cessful they are? 7. What type of support does the organization provide to facilitate access of members to those markets? Governmental support 8. What is the most important governmental support policy/program within the industry? 9. Do all producers have equal access to governmental support? Which ones are most success-ful, which ones have most problems? 10. What type of support is provided by the organization to facilitate access to governmental sup-port? Regulations 11. Which are the most important regulations for the industry and who implements them? (e.g. quality standards) 12. Do/can all producers comply with the regulations? Which ones are most successful, which ones have the most problems? 13. What type of support is provided by the organization to suppliers to comply with such regu-lations? _____ * Beef-cattle/Maize Firm level interviews (feedlots) Feedlots Date: _____________ Company information Business name: Business type: (e.g. partnership, family own, corporation) Locations(s): Sales (three-year avg.): Started operations on: Input suppliers 1) A) Please list the name, location, and feed type of three of your most important feed suppliers in order of importance. (compare corn versus sorghum). Supplier Location (e.g. municipio) Feed type ______________________ _______________________ ______________________ ______________________ _______________________ ______________________ ______________________ _______________________ ______________________ B) Please explain. Since you started operations, what are the main changes you perceive in terms of feed availability and feed supplies? Has the availability and quality of feed im-proved? What types of suppliers are more important today than in the past? 2) A) Please list the name and location of three of your most important cattle suppliers in order of importance. Supplier Location (e.g. municipio) ________________________ ________________________ ________________________ ________________________ ________________________ ________________________ B) Please explain. Since you started operations, what are the main changes you perceive in terms of cattle availability and cattle supplies? Has the availability and quality of cattle im-proved? What types of suppliers are more important today than in the past? 3) A) When you buy cattle, which criteria do you consider when choosing your suppliers? Please check all items that apply and explain why each is important to you. a) Price _______________________________ b) Quantity they can sell _______________________________ c) Place of production _______________________________ d) Product quality provided: Weight _______________________________ Breed _______________________________ Age _______________________________ Health _______________________________ Other _________ _______________________________ e) Other ____________ _______________________________ B) From the list above, which is the most important criterion that guides your choice of sup-pliers? Customers 4) List your main products (e.g. calves, stockers, finished animals) and rank by revenue. 5) A) List 3 of your top customers (in terms of revenues), percentage of sales that goes to each buyer, product sold, and type of business. Customer Sales1 Product sold Business type2 _______________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ _________________ _________________ _________________ 1Percentage of total sales (3 yr average). If possible, complement this information with statistics from balance sheets 2Partnership, family-owned, corporation/small, medium, large firm B) Please explain. Since you started operations, how have your customers changed? Which customers are more important today? Which customers are no longer important for you to-day? 6) A) Which of the following criteria do you consider are most important for your customers? Please check all that apply and explain why it is important. a) Price _______________________________ b) Quantity I can sell _______________________________ c) Place of production _______________________________ d) Product quality provided: Weight _______________________________ Breed _______________________________ Age _______________________________ Health _______________________________ Other _________ _______________________________ e) Other ____________ _______________________________ B) From the list above, which is the single most important criterion that allows you to sell your products? Innovations and changes in internal organization 7) Since you started operations, which have been the most important changes within the business in terms of: a) New technologies (including animal health, genetics, infrastructure). b) Transportation c) Contracts with customers and suppliers d) Education (e.g. workers school years) e) Marketing f) Other Policies/regulations 8) A) Do you participate in any of the following governmental programs? Check all that apply a) PROGAN b) Reconversión Productiva c) Diesel agropecuario d) Trópico Húmedo/Seco e) Ganadero f) PROVAR g) PYME h) ... list others 9) Rank the following elements from 1 to 10 in terms of positive impacts for your business. 10 for greatest impact, 1 for no impact. Please, discuss why it has been positive or why it has not been positive. a) Access to export markets _____ b) Access to maize imports _____ c) Access to infrastructure _____ d) Animal health services _____ e) ... list others _____ Membership Organizations 10) In which of the following organization are you a member? Please, rank them in terms of importance for your business (10 most important, 1 least important). a) Local/Regional cattle men association ____ b) CNG ____ c) AMEG ____ d) ANETIF ____ e) Padrón de Ganaderos ____ f) ... list others ____ Firm level interviews (grain brokers) Date: _____________ Company information Business name: Business type: (e.g. partnership, family-owned, corporation) Locations(s): Sales (three-year avg.): Started operations on: Input suppliers 1) Please name the three most important municipios for you for buying maize. List from most to least important. a) _______________ b) _______________ c) _______________ 2) Since you started operations, have you bought maize from the same municipios/regions? Have other places become more important today? Have other municipios/regions become less important? 3) A) Which criteria do you use to choose where to buy maize grain? Check all items that apply and explain why each is important to you. d) Price I can get _______________________ e) Volume of grain I can buy _______________________ f) Grain quality: (1) Grade14 _______________________ (2) Moisture content _______________________ (3) Size & homogeneity _______________________ 14 g) Other _______________________ B) From the list above, which is the single most important criterion you use to choose your maize suppliers? Customers 4) What are your main products? (whole grain, ???). Rank by revenue. 5) A) List your top 3 customers (in terms of volume sold and revenues), the percentage that goes to each buyer, product sold, and type of business. Customer Sales1 Product sold Business type2 ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ 1Percentage of total sales (three-year average). If possible, complement this information with statistics from balance sheets 2Partnership, family-owned, corporation/small, medium, or large firm B) Please explain. Since you started operations, how have your customers changed? Which customers are more important today? Which customers are no longer important for you today? 6) To sell your products, which criteria are important for your customers? Check all that apply and explain why each is important. a) Price bargain _______________________________ b) Quantity I can sell _______________________________ c) Place of production _______________________________ d) Product quality _______________________________ e) Other ____________ _______________________________ Innovations and changes in internal organization 7) Since you started operations, which have been the most important improvements in terms of: a) New technologies (including animal health, genetics, infrastructure). b) Transportation c) Contracts d) Education (e.g. workers school years) e) Marketing f) Other 8) Do you participate in any of the following governmental programs? a) Apoyos a la Modernización de Infraestructura b) Others _____________ Membership Organizations 9) In which of the following organization are you a member? Please, rank them in terms of importance for your business (10 most important, 1 least important). a) ANEC ____ b) COMAGRO ____ c) Others ____________ ____