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Economic Analysis of the Chile Industry

Economic Analysis of the Chile Industry. Rhonda Skaggs Professor Ag Economics & Ag Business. Earlier Research & Publications. A Survey of Southern NM Chile Producers R. Skaggs, M. Decker, D. VanLeeuwen Ag Experiment Station Research Bulletin #782, Jan. 2000

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Economic Analysis of the Chile Industry

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  1. Economic Analysis of the Chile Industry Rhonda Skaggs Professor Ag Economics & Ag Business

  2. Earlier Research & Publications • A Survey of Southern NM Chile Producers • R. Skaggs, M. Decker, D. VanLeeuwen • Ag Experiment Station Research Bulletin #782, Jan. 2000 • Drip Irrigation and Southern NM Chile Pepper Production: A Survey of Producers • R. Skaggs, M. Hillon, and R. Phillips • Ag Experiment Station Research Bulletin #784, Aug. 2001 • Predicting Drip Irrigation Use and Adoption in a Desert Region • R. Skaggs • Agricultural Water Management, Volume 51, 2001

  3. Recent Research • The NM Chile Pepper Industry: Description, Labor Issues & Economic Impacts • AEEC Master’s thesis • Teri Hall • Monte Carlo Simulation of Flood-Furrow & Drip Irrigation Systems in Doña Ana Cnty, NM • AEEC Master’s thesis • Elizabeth Holland

  4. Publications from Hall thesis… • New Mexico’s Chile Pepper Industry: Chile Types & Product Sourcing • Ag Experiment Station Research Bulletin #___ • Has been reviewed, accepted for publication • Economic Impact of the NM Chile Pepper Industry • Ag Experiment Station Research Bulletin #___ • Has been reviewed, accepted for publication

  5. New Mexico Chile Pepper Industry Source: Processor Interviews, 2001

  6. Sources of Green Chile & Cayenne Peppers Used by NM Chile Pepper Processors

  7. Sources of Red Chile Peppers Used by NM Chile Processors

  8. Chile Peppers Processed in Southern NM by Chile Type & Growing Region Source: Data compiled through processor interviews conducted 05/2001 – 09/2001

  9. Total Estimated Industry Workforce Needed by Month Source: Eastman, 1996, Processor interviews conducted 5/2001-9/2001

  10. IMPLAN Modeling • Input-Output analysis • Direct, indirect & induced economic impacts • Backward linkages • 1998 data • Doña Ana, Luna & Hidalgo Counties • 86% of pepper production • 74% of harvest chile acreage • Green chile, jalapeño & red chile industries • Vegetable production, canning, dehydration, freezing, etc.

  11. Direct employment 610 jobs Farm level production Indirect employment 480 jobs Ag services Other services Retail & wholesale trade Induced employment 209 jobs Retail & wholesale trade Other services Total employment 1,299 jobs Full time equivalents 1998 data IMPLAN model Statewide Employment Impacts of NM Pecan Production

  12. Direct output $47.3 million Farm level production Indirect output $19.4 million Ag services Manufacturing Retail & wholesale trade Induced output $13.1 million Other services Retail & wholesale trade Finance, insurance, real estate Total output $79.8 million Full time equivalents 1998 data IMPLAN model Statewide Output Impacts of NM Pecan Production

  13. Sector Employment Multiplier Output Multiplier Farm level pecan production 2.13 1.69 Statewide New Mexico Pecan Production Multipliers

  14. Questions?

  15. Chile Pepper Imports From Mexico Through New Mexico Ports of Entry Source: Medrano, 2001; Coppenbarger, 2001

  16. Chile Pepper Acreage Harvested in 1999 Source: NMDA 1994 - 1999

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