Table Of Content

TRANSITIONSINTHEMEXICANSUGARIN’DIISTRY GRETCHENGREENE OAFDTIHSESOEUFRNTITAVHTEEIRROSNEIDQTPOYURCIOETRFSOEEFRMNLETOONEFRTDIPSDTHAFOIOLITRNOHSPTEOAHPGREHTRYDIAEADGLURFAEUTELEFOISFLCLHMOEONLT UNIVERSITYOFFLORIDA CupyhghiI99!l by (jreichenCrecw mpreojehcitsTIwhroieu&mledtnlcsiiusorKuensluyUaoihtoaitveueoibfleckedninLo'awailgcrededalgtoeDdreo.aflSiilhlecvsseMreiinxutieFcrleoasrnteissnugwghbaoorrtinhnotdsoulswigrrriyat.eciWaoinutsdhloyloustrheaharidem.d,wtihiihs ACKNOWLEDGMENTS ThNnunuscriplcameinlocxisicncclhonX&loThomiuSprccn'sabiliiylocoordinate resourcesandpeneraicideas.ChrisAndrew'sguidanceiiraietLSofresearchmcihodologyand edirmgwasindispensable.ChuckMoss'spaiiencethroughhoursofdiscussionsisgreatly appreciated.JoseAlvarezmughrmemuchabout.sugarinFloridaandLatinArrsericaand helpedmetounderstandthetopic.TerryMcCoyhasbeenenthusiasticthroughoutthe project.AndySchmitzhasalsobeenveryhelpful,contriburingmuchintheareaof sweetenersandtrade.MostthanksgoloCheWedgewonhfamilyofFloridasugarproducers whosefellowshipsponsoredthisresearch. Besidesmysupervisorycommillee,manyotherprofessors,siudenuandslaffin[he FoodandResourceEconomicsDepanmemhavesharedrheirinsightsontheresearch process,andthisismuchappreciated,JohnGordon,JohnHoltandDonnaLeeareamong thosewhohavebeenmosthelpful.AlesHcytium,RogerClemmonsandthevarious membersofihcsupportcenterstaffhavebeeninvaluable.RoseWolfendale.PattyConnolly. JaniceBaisdenandAliceJempsonhavealsohelpedwithmanyyearsofassisumceand interestinthrsproject.ThankyouloKimBoiwhocarefullyandquicklycdiiedmyfinal mnnusenpr.Thanksalsogotomygoodfriends:BenCovingion.AmyThurow.Kaihy Cochran.ChnricncBiew.sler.JimKunciz,AnoukAndreandJoeSchumackcrhavesupported methroughthepixetts.Myfamilytoohasbeenasourceofconfidenxthroughoutthis BillMessinafirstesposudmetotheintriguesofswxiencreconomicsandisduea specialthunkyouasisRevAcosta,whoseenthusiosm,patienceandinsightwereessential inthislongproccas. InMcsico,many,manypeoplesharedtheirviewsandunderstandingofthesugar industrywithincrediblefnendlinessand,sincehty.InadditiontoSilverioRores,several overcomeanyandallobsixles.ChristinaNunen,ArluroBoettrdo.Ceballos,LuciaTadeo RosaandherfamilyweremosthelpfulandpatientinleachingmeSpaant.isAhnnaanhdellian ‘'imnslanng"formemuchofthetimealthoughnoneofthemspokeanyEnglish,Gladvsand theAcostafamilyalsohelpedmenavigateIhegenerallyunpredtciablowatersoflifeina foreigncountry.JoscLuisGarcia.JoseCciro.MiguelGalloandMarioGarciaEsirada regularlyrexivedmeinMexicoCityandalwaysansweredmytediousquestions. IntheUntiedSlaics,PeterBuryonellandRonLordwereverysupportiveofthis I.andtheyprovidedmanyresources,dataandcxplanaiioas. TABLEOFCONTENTS iib5assts5ssijs ......333323112390 .43 .44 }THECABNUDnMCIALLLR:ETLEACTHINOONLSOHGIIPCABLETCWODEEEPNEGNRDOEWNECER ..5547 ....666666113223 .6637 . RcrrLcoaorkcSLSSAOUPDihneluawuounicaguanamgmvilnaoedmremiirAcrderania-ihssriDnprrai’e^ngrctyhyaagToivoRdnodeenFcgdsusolccoeacloifa"nuhnprdsBeSimcuruoochC/rgtnPmroahSaornteMysarMiTit"lsReni]necconsinhlenuTaomorlsgcochgtyIlrirResetrsiteuatriocthvesrs ..7723 JTHEMEXICANSUGARINDUSTRYINASYSTEMSENVIRONMENT ASyPshtyesmiscaCloEnntvesitrofnomretnhteSugarIndustry CYCoioesmltpdsestiSoniglCarnodpelimaic Consumers USsuimnLCCRmgiehhbafaateronnhrerggyameetSeyoiidsnnftPttArehhrimeetcieaSRcsoyloelsfaet2SCe7ouomfggnaoBirfetnPieavfeyitmTseonotl anSweetenerMarket. THFihisveteoCPruryreroreefnqMturFCsCoilnSctsrionfvoterhreHsFyUnCiSteMdaSrlkaettes.... PRICESENSITIVITY 103 AobRfa^T|hcUeilUrncoirmveDeninThicsTcfyonroofTuhoFenloDPmerglera^eeiemncoPcfolnDTiooaclTthFoeurlGforifaldIPihmiiacllmocsSoocfphThohyoel TRANSITIONSINTHEMEXICANSUGARINDUSTRY By GRETCHENGREENE CMhaajiorrmDacnp;aTnhmoemnai;sHFooSdpraenednRcsouiecEconomies ThissmdyexaminesthemanyandvariedslixicTuralchangesThaiarcoccurringwiihin theMexicansugarindustry,withspecialaiicnliongiveTotheperiodfromI98yTluough 1997.DuringThisperiod.Theindusiryexperiencedtheprivaiizaiionofsugarmiil.s.The liberarionofThedomesticsugarprice,amoveTowardba.slngthepaymentforsugarcaneon sucrosecontentasopposedtotheweightofthecaneandtradeliberalisationthroughthe signingoftheNorthAmericanFreeTradeAgreement(NAFTA),The.studyincludestwo basicsections.PanIincludesadescriptionofthestatusandapreliminaryassc.ssmentofthe manystructurechangesintheindustry.PanIIcontainsaneconometricanalystsoftheprice srmsiiivityofproduction,bothatThenationaJlevelandinthe.stateofVeracniz.Atheoretical frameworkisdevelopedtoanalyttewhetherornotthereexistsonc^limalpricefordomestic sugar,andifso,underwhichcircumstancesthatoptimalpricewouldfucililalcthe