land is irrigated, compared with 10 percent in the U.S. The large majority of farms are small,

collectively-owned ejidos. While some ejidos employ modem cultivation techniques, traditional

practices are the norm. A relatively few large farms and ranches provide significant portions

of Mexico's food, particularly for export crops. These enterprises frequently are highly

advanced.

 While Mexico produces surpluses of some fruits and vegetables, nuts, and coffee, it relies

upon imports to have sufficient grains, milk (Mexico is the world's largest importer of powdered

milk), edible fats and oils. In addition and despite significant increases in domestic processing,

imports of processed food products have grown dramatically in recent years. Approximately 80

percent of Mexico's food imports and 90 percent of exports are with the U.S. U.S. exporter

have a 90 percent market share of consumer-ready products, including perishables. Virtually

all of the major U.S. fast food chains, including some specializing in Mexican foods, are

established in Mexico and growing rapidly. The only perishables for which the U.S. is not the

primary supplier are cheese and some specialty fish, such as smoked salmon (U.S. Agricultural

Trade Office). An impediment for U.S. exporters, regarding the former is that Mexicans have

not traditionally eaten yellow cheeses. However, this may be changing with generic and brand

advertising and experience with yellow cheeses through fast food outlets.


Processed Foods

 Food processing industry is an important and growing industry in Mexico. It is the

largest manufacturing subdivision, accounting for 20 percent of the manufacturing Gross

Domestic Product and 5 percent of overall Gross Domestic Product. Food processing grew at

an average annual rate of 3.9 percent per year from 1989 through 1992. U.S. firms have played