New Mexico State University USDA-ERS Cooperative Agreement Research

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New Mexico State University USDA-ERS Cooperative
Agreement Research

• Rhonda Skaggs, Ph.D.
• Dept. of Ag Economics Ag Business
• NMSU
• Las Cruces, NM

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History

• Research since 1999
• 2 agreements
• NMSU located in Las Cruces, NM
• Proximity to Santa Teresa, NM
• Four masters students supported
• Diana Lopez Mitchell (MS)
• René Acuña (MS)
• Christie Guinn (MAG)
• Cristina Carmona (MAG)

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Collaboration with

• New Mexico Department of Agriculture
• New Mexico Livestock Board
• Unión Ganadera Regional de Chihuahua
• Universidad Autónoma de Chihuahua

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2003 Distribution of Imported Mexican Calves
(1.2 million animals)
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1 Econometric Analysis of Cattle Movements
from Mexico to the U.S. (D. Lopez Mitchell)

• Need for information on annual flow of calves by
  port by month
• Allocation of inspection services and personnel
• Budgeting
• Development of models to explain predict
  Mexican calf imports
• Precipitation (seasonality)
• U.S. prices

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Calves Imported at Santa Teresa, NM

• When the price ratio ?, calf imports ?
• When rainfall in Chihuahua ?, calf imports ?
• Model explained 75 of variability

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Results for Other Ports-of-Entry

• Eagle Pass, TX 60
• Del Rio, TX 68
• Hidalgo, TX 34
• Laredo, TX 71
• Presidio, TX 68
• Columbus, NM 66

• San Luis, AZ 60
• Douglas, AZ 63
• Nogales, AZ 79

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2 - Identification of Origins Destinations of
Imported Mexican Cattle (R. Acuña)

• Initiated Spring 2001
• Interest in livestock traceability
• Europe, Canada
• Food Mouth Disease, BSE
• Data for imported Mexican calves
• Santa Teresa / San Jerónimo

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Sources of Data

• Origins of calves in Mexico
• Certificado Zoosanitario Unión Ganadera
• 900 observation The Ins
• Destinations of calves in the U.S.
• Unión Ganadera, bills of lading
• 4,025 observations The Outs
• New Mexico Livestock Board
• 2,278 observations Inspection certificates

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Procedures

• Create database in MS-Access
• Convert data files
• Import data to Arc-View
• Join data for the imported calves with geographic
  data
• States, counties, zip codes, municipios
• Derive sums, maps, tables
• Tuberculin number is common between New Mexico
  inspection form and Mexican certificado
  zoosanitario

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3 - Overview of North American Cattle Trade (C.
Guinn)

• North American Beef and Cattle Trade A Current
  Perspective
• Publication describes status of US-Mexico-Canada
  beef cattle trade
• NM AES technical report

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• Live Cattle Imports by Port of Entry from Mexico
  to the United States Data Models
• Update Lopez Mitchell work
• Models explanatory power ?
• As US-Mexico live cattle price ratio ?, imports ?
• Rainfall coefficients not different from zero
• NM AES research report
• Currently revising existing US livestock sector
  model to better capture Mexican imports

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Current model revision work

• Animal products branch quarterly livestock model
• (R. Stillman)
• This model treated cattle beef imports as
  exogenous
• We are trying to endogenize the imports

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4 The Chihuahua, Mexico Export Cattle Industry
(C. Carmona)

• Procedures for Exporting Cattle from Chihuahua,
  Mexico to the USA
• Detailed description of Mexican policy
  environment, regulations current procedures for
  exporting cattle to the US.
• NM AES technical report

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Tuberculosis and Brucellosis Test
Certificate of Herd of Origin
Cattle Movement Permit
Exportation to United States
Certificate of Ovariectomy Spaying
Zoosanitary Certificate
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• Results of a Survey of Cattle Exporters in
  Chihuahua, Mexico
• Develop information for the population of cattle
  exporters in Chihuahua, Mexico
• Provide an overview of how Mexican cattle
  exporters perceive US-Mexico cattle trade
• Random sample survey
• Data from 143 cattle exporters
• Interviews during Summer 2004
• UACh collaboration

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• Results of a Survey of Cattle Exporters in
  Chihuahua, Mexico
• Mean cattle exported 549
• Exports ranged from lt 50 - 3,000 head
• Export to US for better prices, ability to sell
  large lots
• Avg. 18 years of exporting to US
• 80 have received government subsidies (genetics)

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Survey of Chihuahua Cattle Exporters

• Pessimism about Mexican market
• Predict more US sanitary barriers
• Reasons for involvement in livestock industry
• Tradition, culture, lifestyle, social status
• Enterprise diversification
• Developing producer/exporter typology
• W 192

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Other activities

• Effect of US brand laws on imports of Mexican
  cattle
• C. Guinn
• Development of an improved bill of lading for use
  at NM ports of entry
• C. Carmona

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Thank You Gracias!
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• Rhonda Skaggs, Ph.D.
• Professor, Agricultural Experiment Station
• Dept. of Ag Economics Ag Business
• Box 30003 MSC 3169
• New Mexico State University
• Las Cruces, NM 88003
• Tel [phone] or 505-646-2401
• Fax [phone]
• Email rskaggs_at_nmsu.edu