Acapulco, luxury hotels in Mexico City and other cities, and the finer restaurants. This market

is served by companies focused directly on product quality. In many instances the beef and port

for this market must be imported, generally as primal cuts. Due to its grain shortage and the

absence of modern feedlots, Mexican production costs for fed beef are high, and imports

normally are cheaper than domestic beef.

 Processed meats are also an important product in Mexico. Hot dogs, chorizo and other

sausage products, and hams are examples. These products are produced by a handful of major

firms4 and several thousand small firms. The major firms have most of the supermarket business

and the smaller firms sell most of their product through the "mom-and-pop" neighborhood food

market. The leading firms are modern in technology and becoming more consumer-driven every

year. They advertise, pay close, attention to quality control, and coordinate their in-plant

operations with their farm suppliers and the supermarket customers to ensure that their efforts

to attain quality are not undermined by poor practices by their suppliers or customers.

 The leading meat processor is Sigma Alimentos, which markets hams, sausages, bacon,

cheeses, and a full line of cold cuts. It has five processing plants located from Mexico City

northward; maintains fleet of approximately 500 refrigerated trucks, ranging from 5 tons to

tractor-trailers; and, through contractual agreements with clients, has access to refrigerated

storage facilities throughout Mexico. The firm maintains its own fleet of trucks to ensure a high

degree of reliability and handling. Of particular concern in this regard are problems related to

sanitation and temperature controls with for-hire trucking. Sigma Alimentos serves all types

of vendors, from supermarkets to luxury hotels to mom and pop stores. In addition, it has

between 60 and 70 of its own stores located throughout Mexico. For raw materials, the firm