an important part in this growth and in raising the quality of products produced. Prominent

U.S. processors operating in Mexico include Del Monte, Birds Eye, Green Giant, and

Campbells. Due to an overall economic slowdown, the growth rate fell to .9 percent in 1993.

Still, this performance was considerably better than the 1.43 percent decline for manufacturing

as a whole. In 1994, food processing is expected to grow by 2.4 percent (Grupo Financiero

Bancomer). Over a third of the industry is devoted to processing perishables (Figure 3).

 Despite rapid domestic growth in production, imports of U.S. processed foods have

mushroomed. In the midst of the economic slowdown in Mexico, U.S. exports increased by 55

percent in 1993. Reasons for this include the increasing popularity of U.S.-styled fast foods;

the rise of warehouse stores, with perishables supplied largely from the U.S.; and the high

reputation of U.S. processed foods for quality and safety.


STANDARD OF LIVING AND THE POTENTIAL OF PERISHABLES
FOR U.S. EXPORTERS

 Per capital income in Mexico is between $2,800 and $3,500,1 or about one ninth that

enjoyed in the U.S. and Canada. It should be cautioned, however, that it is often difficult to

measure real incomes in developing countries. A significant amount of economic activity may

not be reported due to tax evasion or because the activities are subsistence or barter. Average

per capital incomes can be deceiving. Much of the wealth and income are concentrated in the

middle and upper classes. Consequently, a large segment, perhaps half of the Mexican

population lives in poverty. It is estimated that 70 percent of the impoverished Mexicans live

in the countryside (Economist, 1993). However, a growing and largely urbanized segment of