Transcript The New Mexico Chile Pepper Industry

The New Mexico Chile Pepper Industry:
Description, Labor Issues,
and Economic Impact
Presented By: Teri Hall
Objectives:
1. Describe the New Mexico Chile Pepper Industry
2. Describe the current labor situation and labor
issues relevant to the New Mexico chile pepper
industry;
3. Provide estimates of the industry’s employment
and economic impacts on Doña Ana County;
4. Evaluate the economic effects of industry
changes.
Agriculture and the Chile
Pepper Industry in New
Mexico and Dona Ana County
Chile Pepper Imports From Mexico
Through New Mexico Ports of
Entry
60,000
50,000
Metric Ton
40,000
30,000
20,000
10,000
0
1989
1990
1991
1992
1993
1994
1995
Year
1996
1997
1998
1999
2000
Chile Pepper Acreage Harvested in
1999
New Mexico Chile Pepper
Industry
New Mexico Chile Industry
Green Chile
Dried/Dehydrated
Cayenne
Mash
Fresh
Red Chile
Dried/Dehydrated
Wet Processed
(Retail, Industrial, Food Service)
Jalapeno
Red Chile
Paprika
Dried/Dehydrated
Dried/Dehydrated
Dried/Dehydrate
Fresh
d
Wet Processed
(Retail, Industrial, Food Service)
Powders
Canned
Frozen
Pods
Product Mixes
Spice
Mixes
Branded Products
Livestock Feed
Canned
Oleoresin
Powders
Red Chile
Powder
By-Products
Flake
s
Branded Products
Capsaicin
Extraction
Spice
Mixes
Color
Extraction
Cosmetics
Frozen
Food Coloring
Product Mixes
Chile Peppers processed in
Southern New Mexico by chile type
and growing region
Green Chile
and Cayenne
Peppers
(tons)
Mexico
Jalapeno
(tons)
Green Chile
Peppers and
Jalapenos
(tons)
Red Chile
Peppers
(tons)
22,650
11,100
0
1,500
USA1
3,150
4,440
0
0
Texas
0
0
0
67
29,550
1,850
2,250
7,243
16,304
1,110
5,032
15,675
9,797
3,518
1,258
12,250
81,451
22,018
8,540
36,735
New Mexico2
Dona Ana
County
Other3
Total
Demographics characteristics of hired
farm workers in Doña Ana County
Source: Local interviews and
previously published material
• 10,000 farm laborers
• 3rd grade education
• 100% Hispanic
descent
• 40% U.S. citizens
• 20-40% illegal
immigrants working
• Average family is 4.2
people
• Average household
income is $7,000/year
Labor as a percentage of production cost for
hand and mechanical chile harvest in Doña
Ana and Sierra Counties, 1995, 1997, and
2000.
Mechanical
Hand
1995
1997
1995
1997
Red Chile
41.22%
49.07%
9.71%
11.56%
Jalapeños
42.57%
47.16%
6.54%
7.79%
*Labor cost divided by total production costs.
Source: Eastman, 1997
Total estimated industry
workforce needed by month
Chile Pepper
Production
16,000
14,000
12,000
Dona Ana County Chile
Pepper Processing
10,000
8,000
Luna County Chile
Pepper Processing
6,000
4,000
2,000
0
January
April
July
October
Source: Eastman, 1996, Processor interviews conducted 5/20019/2001
Regional Chile Pepper
Processing (including
Dona Ana and Luna
Counties)
IMpact Analysis for PLANning
(IMPLAN)
•
•
•
•
•
Direct effects
Indirect effects
Induced Effects
Backward linkages
Full-time equivalents
Green Chile Pepper, Jalapeño, and
Red Chile Industry Input-Output
Modeling-Doña Ana and Luna
Counties Combined
Sector
Industry
26 Agricultural-Forestry-Fishery Service
18 Vegetables
67 Canned Fruit and Vegetables
103 Food Preparations-NEC
447 Wholesale Trade
68 Dehydrated Food Products
435 Motor Freight Transport and Warehouse
454 Eating and Drinking
56 Maintenance and Repair Other Facilities
474 Personal Supply Service
0 All Other
Total Employment Impact
Source: IMPLAN 2001, Model Output
Direct
0.0
699.0
649.0
278.0
0.0
142.0
0.0
0.0
0.0
0.0
0.0
1,768.0
Indirect
Induced Total
1,534.4
3.8
1,538.2
64.4
0.9
764.3
2.1
0.1
651.2
1.6
0.9
280.6
207.5
16.9
224.5
0.9
0.0
142.9
125.4
8.1
133.5
31.8
81.9
113.8
88.3
10.2
98.5
71.4
10.1
81.5
538.5
550.6
1,088.8
2,666.3
683.5
5,117.8
Summary
• Thesis objectives
– Chile pepper
processor interviews
– Description of the
chile pepper industry
– Review existing
information
– Application of
IMPLAN
Implications
• Inaccurate and limited
industry data
• Significant
“employment”
economic impacts on
the local economy
Shortcomings
• Exercise caution
when looking at
results
• Backward linkages
• Accurate
representation of the
local economy
• Agriculture
employment data
Recommendations
• Unanswered
questions
• Create new sector
within IMPLAN
Questions?