In this section, marketing chain for perishables in Mexico is described. It should be

 stressed that it is impossible to characterize this system in detail for a nation as large and diverse

 as is Mexico. The following discusses the general situation.


 THE FIRST FARM TRANSACTION

 The nature of the first transaction for perishables varies with the size and type of the

farm. The farmers with the smallest farms, the ejidos, produce small volumes using traditional

methods. The largest farms are as big as any in the United States and often use the most

modem technologies available. Between these two groups is an intermediate sector that is a

mixture of the two. The marketing choices of the three groups and the ability of the farmers

to affect these choices are similarly segmented.

 The smallest farmers with their small volume of production, have very few choices.

They sometimes can make an arrangement with a local packing house if their product quality

is good enough. In other instances they sell their produce to traveling middlemen called

"coyotes." These individuals either act as wholesalers, buying the production, or as brokers,

taking the production on consignment. In either case, they arrange transportation and establish

linkages with packers, wholesalers or retailers further down the marketing chain. Coyotes may

either acquire product on a spot market basis or establish longer term relationships in which

monies may be advanced for plantings, seed and expertise may be provided, and/or product

prices may be agreed upon in advance.

 Stories of coyotes cheating farmers abound. Both the frequency and extent of cheating

are undoubtedly exaggerated. However, smaller farmers are vulnerable to being cheated. The

farmers' small size and lack of education makes expensive the gathering and processing of