Latin America’s biggest solar energy plant helps power La Paz

 Mexico's geography in the Press, Updates to Geo-Mexico  Comments Off on Latin America’s biggest solar energy plant helps power La Paz
Mar 312014
 

Latin America’s largest solar power plant is now supplying power to the city of La Paz in Baja California Sur. The Aura Solar I photovoltaic power plant has an installed capacity of 30 MW. The plant was officially inaugurated on 19 March 2014, and will supply about 82 GWh/year of electricity to around 164,000 residents of La Paz, more than two-thirds the city’s total population of 220,000. It is located a short distance east of the city, and replaces an old, air-polluting thermoelectric plant.

Auro Solar 1 project, La PazThe new power plant, owned by Corporación Aura Solar, is the largest photovoltaic power plant in Latin America, according to company chairman Daniel Servitje Montull. The 100-million-dollar plant occupies 100 hectares (250 acres) and was constructed by engineering firms Gauss Energía and Martifer Solar. The project relies on about 131,800 solar panels and has an estimated operational life of 30 years. About 25% of Mexico’s electricity is currently generated using clean energy sources. Mexico has set a national target of 35% clean energy by 2024, in order to minimize Mexico’s contribution to global climate change.

This 2-minute YouTube video shows various stages in the building of the plant:

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Road collapse in Baja California in December 2013 increases trucking costs

 Mexico's geography in the Press  Comments Off on Road collapse in Baja California in December 2013 increases trucking costs
Mar 292014
 

The adverse effects of the dramatic collapse in December 2013 of a 300-meter section of the Tijuana-Ensenada coastal highway are likely to be felt for at least six months and probably longer. The extent of the problem is clear from the images in the news reports from the time:

tijuana-ensenada road collapseThe collapse took place about 95 km (60 mi) south of the border, and closed the scenic coastal highway near the San Miguel toll booth. It is still unclear whether or not an attempt will be made to rebuild the coastal highway, or whether a new highway, or new sections of highway, will be built further inland.

In the interim, passenger vehicles and light trucks are using the old two-lane road between Tijuana and Ensenada, while heavy goods vehicles are being rerouted via Tecate, adding at least 30% to their costs, according to Mexican National Confederation of Transporters (MNCT).

The MNCT says that 300 trucks a day travel between Tijuana and Ensenada and that the rerouting adds at least  80 km (50 mi) to each trip, with corresponding expenses in gasoline, driver salaries and vehicle maintenance. It also almost doubles the time required. A spokesperson for the MNCT has called for authorities to allow heavy trucks to use the more direct non-toll route (Highway 1). However, the increased traffic on the old road is already leading to backups and an increase in minor accidents, so it is unlikely that authorities will allow any larger trucks to use that route.

It is too early to say how serious the effects will be on Ensenada’s economy. The city has Mexico’s third busiest cruise ship terminal and is the main gateway for travel further south along the Baja California Peninsula.

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León hosts Latin America’s largest trade fair for footwear

 Updates to Geo-Mexico  Comments Off on León hosts Latin America’s largest trade fair for footwear
Mar 262014
 

Mexico’s footwear industry is heavily concentrated in three main cities: León, Guadalajara and Mexico City. Factories and workshops in the city of León in the state of Guanajuato account for about 68% of all shoes made in Mexico. The two other important manufacturing areas for footwear are Guadalajara (Jalisco) where about 18% of the national production originates, and Mexico City (together with surrounding parts of the State of Mexico), responsible for 12%.

Footwear industry in Mexico

Concentration of shoe industry in Mexico.

According to the 2009 Economic Census, there were close to 7500 “productive units” related to shoe manufacturing in Mexico, with about half of them located in the state of Guanajuato. In 2012, national producers turned out 244 million pairs of footwear, of which 171 million pairs (70%) were made in Guanajuato.

Shoes are also an important international trade item. In 2013, shoe exports reached 26 million pairs, worth almost $600 million (an increase of 14% compared to 2012). The main export markets were the USA, Canada, Colombia, Guatemala, Panama and Japan.

Mexico’s shoe industry hosts several major trade fairs each year. The single biggest event, SAPICA (Salón de la Piel y el Calzado), is Latin America’s largest international footwear trade fair and is held in León twice a year. The next SAPICA trade fair opens today and runs 26-29 March 2014 in León, Guanajuato. This show has 45,000 square meters of exhibition space, more than 2000 stands and 850 presentations. SAPICA has gained international recognition and attracts 11,000 buyers (from the USA, Canada, Europe, Japan, and Central and South America) and 35,000 visitors each year.

The flexibility of León’s shoe manufacturing industry has enabled firms such as Poppy Barley (based in Edmonton, Canada) to be able to market custom-made boots via their website and without the overheads of any conventional footwear stores . Individual purchasers take their own foot measurements, and then the boots are made to order and shipped to their homes. This “made to measure digital retail” approach flies in the face of the mass production that has become the norm in the footwear industry. The Poppy Barley website includes a section devoted to its manufacturing partner in León.

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Mar 242014
 

According to Eduardo Barroso, the CEO of management consultancy EB Turismo, in his presentation at the XII Foro Nacional de Turismo held in Mérida, Yucatán, in February 2014, Mexico’s 83 Magic Towns (Pueblos Mágicos) attracted more than 4 million visitors in 2013, and tourist spending of more than 6 billion pesos (460 million dollars). However, he also pointed out that the program has not been prudently and carefully developed, but has been distorted by the designation of 46 Magic Towns in just two years (2011 and 2012), compared to the designation of just 37 Magic Towns in the preceding decade. (The Magic Town program started in 2001.)

Magic TownsThe Tourism Secretary Claudia Ruiz Massieu has called a halt to the program while officials work out how to reinstate it in a manner that will ensure that only towns worthy of the designation can actually acquire the status. This will no doubt require establishing new guidelines and regulations governing the program.

Success stories for the Magic Town program include San Miguel de Allende, which was first designated a Magic Town but has since been elevated to the much more exalted status of a World Heritage City;  Real de Catorce, in San Luis Potosí, which has seen visitor numbers jump by 1200% in only 12 years; and the town of Tequila, in Jalisco, where the coordination of three levels of government has seen visitor numbers quickly rise from 18,000 to 165,000 visitors a year.

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Mexico’s 2014 Economic Census is underway

 Mexico's geography in the Press  Comments Off on Mexico’s 2014 Economic Census is underway
Mar 222014
 

Mexico’s National Statistics Institute (INEGI) has begun collecting data for the 2014 Economic Census. The census, held every 5 years, surveys the estimated 5.7 million business places throughout the country, excluding only those used for agricultural, forestry and fishing operations, or exclusively for informal business activities.

Economic census 201425,000 trained census takers are now systematically covering all urban areas, together with a representative sample of rural areas, gathering data such as type and sector of operation, number of workers, educational levels, fixed assets and use of information technology.For the first time, companies can opt to enter data directly via a webpage.

Preliminary census results will be released in December this year, with more detailed tables released in stages between July and December 2015.

The Economic Census is held every five years. The results of previous economic censuses (2009, 2004, 1999, 1994, etc) can be accessed via the INEGI website.

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Eight types of bananas are grown commercially in Mexico

 Other  Comments Off on Eight types of bananas are grown commercially in Mexico
Mar 202014
 

In an earlier post, The geography of banana production in Mexico, we provided an overview of banana production in Mexico. Eight different kinds of bananas are grown in Mexico (see graphic). The harvesting of bananas is mainly in the third quarter of each year.

Eight kinds of bananas grown in Mexico

Eight kinds of bananas grown in Mexico. Click to enlarge. Credit: SAGARPA

The eight main types of bananas grown in Mexico are:

  • Cavendish gigante – thick skin, milder taste, the most popular of the smaller varieties, 55% of national production, half of it from Tabasco
  • Macho – plantains, best eaten cooked; about 15% of national production, mainly in Chiapas (municipalities of Suchiate and Acapetahua), Tabasco (Centro and Cunduacán) and Veracruz (Otatitlán and Tlacojalpan)
  • Tabasco – high quality, medium sized fruit with excellent flavor. About 7% of national production
  • Valery – less firm fruit, consistency more like a cherry (4%)
  • Dominico – short, squat, relatively straight and sweet-tasting (3%)
  • Pera – fat, slightly curved, and up to 24 cm in length. Each finger can weigh 300 grams (2%)
  • Manzano – long rhizomes, pleasant taste and smell (1%)
  • Morado – disease resistant, stronger tasting, orange-tinted skin (0.5%)

Mexican banana and plantain recipes (from MexConnect)

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Cosmic botanical garden in Toluca

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Mar 152014
 

The city of Toluca (population 1.8 million), the capital of the State of México, was in the news recently as the site for the tri-national meeting between the heads of state of Mexico, the USA and Canada to mark the 20th anniversary of NAFTA.

Nestled away inside the city, away from its burgeoning factories, is the former city market. The market closed in 1975. Plans to demolish it were forestalled when renowned Mexican artist Leopoldo Flores stepped up with a plan to restore the market building, which dated back to 1909, into an artistic gem housing a botanical garden.

Cosmovitral, Toluca

Used under Creative Commons Attribution-Share Alike attribution

The market’s original windows were replaced with large glass murals, comprised of half a million pieces of glass and covering a total area of more than 3,000 square meters. The revamped building, now known as the Cosmovitral, was reopened in 1980. In 2007, the Cosmovitral narrowly missed being named one of the 13 man-made wonders of Mexico.

The centerpiece of the Cosmovitral murals is the stunning image entitled Sun Man (Hombre Sol).

Possibly the world’s best decorated glasshouse, the Cosmovitral houses over 500 different plants from around the world and has become one of the city’s single most popular tourist attractions, though rarely visited by foreign tourists.

Where? The Cosmovitral is located in downtown Toluca at the intersection of Juárez and Lerdo de Tejada streets. Guided tours are available.

When? It is normally open Tuesday to Saturday, 10 a.m. to 6 p.m.; Sundays 10 a.m. to 3 p.m.

Admission? Tickets are 10 pesos (less than a dollar) for adults, 5 pesos for children. Guided tours, mostly to explain the Cosmovitral’s stained glass, are available. Art exhibitions are hosted regularly.

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Mar 132014
 

Having noted in previous posts that farm sizes in southern Mexico are smaller (on average) than in northern Mexico, and that farm size is affected by socio-economic factors, and that farmers of smallholdings are unable to generate a decent profit, it is interesting to consider the relationship between farm size and marginalization.

Mexico’s National Population Commission (Conapo) has formulated a compound indicator of “marginalization” and publishes its “marginalization index” at regular intervals. Data are available at both the state and the municipal level for the entire country. This discussion relies on the state level data.

Scatter graph showing average farm size and marginalization index

Scatter graph showing average farm size and marginalization index. Data: INEGI, Conapo. Credit: Geo-Mexico

Each dot on this scatter plot represents a state. For the 32 points, the statistical correlation (Spearman’s Rank Correlation Coefficient) is –0.483. This negative correlation (significant at the 95% level) means that marginalization is inversely associated with farm size  (i.e. the greater the marginalization, the smaller the likely farm size).

In short, the north-south divide that we found when looking at the pattern of farm sizes in Mexico is closely linked to the north-south economic divide that characterizes the country.

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Geo-Mexico has many other agriculture-related posts (easily found via our tag system). They include posts about the geography of growing/producing Christmas trees, cacao, honey, sugarcane, coffee, chiles, floriculture, tomatoes, tequila, horticultural crops and oranges. Also worth reading are:

US Airways customer service redefines the geography of North America

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Mar 102014
 

According to a US Airways customer service agent in Phoenix, “US Airways does not charge for the first checked bag on international flights. Flights from the US to Mexico and Canada are NOT considered international flights because they do not cross water.”

This statement was made in response to a query regarding a charge of US$25.00 for a single checked bag on a flight from Guadalajara to Phoenix, following a Geo-Mexico fact-finding trip to Jalisco.

Hmm… does this mean no passports required? Does this mean that Canada, the USA and Mexico share a common currency, language and government. Me thinks not!

Defining “international” as requiring the crossing of water actually gave me a vivid flashback to my early days teaching in the Caribbean, where I discovered, to my great surprise, that some students had a similar idea. Because they knew that different Caribbean islands were (generally) different countries, they assumed that all countries were islands. In one extreme case, a student colored the political boundaries between all the countries of South America blue, justifying this by saying that each country was an island and must have water separating it from the next country!

Fortunately, the customer service agent’s interpretation of international is not echoed by the airline’s own webpage about Baggage Policies. In the circumstances, perhaps US Airways should consider upgrading its training programs for its customer service staff. Geo-Mexico would be pleased to assist.

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Mar 082014
 

Bananas are the world’s fourth most important dietary staple after rice, wheat and corn (maize). They are a major source of nutrition (low in fat, but rich in potassium and vitamins A, B, C and G) for people living in tropical areas. Of the 80 million tons of bananas produced globally each year, less than 20% enters international trade; the remainder is eaten locally. Bananas that are ripe and eaten raw are called desert bananas; those that are cooked are called plantains.

India is the world’s largest banana producer (31% of the world total) but is not an important exporter. Other leading producers include China (10%) and the Philippines (9%). Mexico (2%) is the world’s tenth largest producer, and the world’s 13th largest exporter. The world’s leading exporters of bananas (in dollar terms) are Ecuador, Costa Rica, Colombia and the Philippines.

How did bananas reach Mexico?

The banana plant is thought to have originated in southern Asia, possibly in the Mekong Delta area. Though the details are sketchy, banana plants were carried from there to Indonesia, Borneo, Philippines and Pacific Islands, including Hawaii. By AD650, bananas had reached Egypt and the Mediterranean coast. In the fiteenth century, Portuguese navigators and slave traders carried bananas to the Canary Islands. By the early sixteenth century, bananas had been introduced by Spanish missionaries to Santo Domingo on the island of Hispaniola in the “New World”.

Bananas reached Mexico for the first time in 1554 when Bishop Vasco de Quiroga (the first Bishop of Michoacán), returning from Europe, brought some plants back with him from his short layover in Santo Domingo.

FAO statistics for the past few years show that Mexico has about 75,000 ha planted with bananas. Total production is close to 2.2 million metric tons a year, giving an average yield of about 30 metric tons/ha. The yield is trending slowly upwards. The yield under irrigation (38.3 tons/ha) is 55% higher than that from rainfed farms. As a result, while irrigated farms account for just under 40% of the total acreage of bananas, they supply 50% of total production. Commercial banana growing provides about 100,000 direct jobs in Mexico and 150,000 indirect jobs.

Mexico's banana-growing states

Mexico’s banana-growing states [corrected]

The main banana producing states (see map) in Mexico are:

  • Chiapas (35% of national production), especially the municipality of Tapachula
  • Tabasco (25%), where average price per metric ton is lower. Mexico’s largest banana exporting company, San Carlos Tropical Exports, is based in Tabasco.
  • Veracruz (13%), especially in the municipalities of Martínez de la Torre, Atzalán, Tlapacoyán, Nautla and Papantla
  • Michoacán and Colima (6.5% each)

Bananas are also grown, on a smaller scale, in Jalisco (4.5%), Guerrero and Oaxaca (3% each) and Nayarit (2%).

Maps showing banana cultivation areas in individual states can be generated via SIAP, the Agriculture Secretariat’s online database system.

Trade in bananas

The world’s major importers are the USA (bananas are the single most widely eaten fruit in that country), Germany, Japan, Russia, UK, Italy, France, Sweden and China.

Bananas were first introduced into US diets (from Cuba) in the early 19th century. The earliest large-scale shipments of bananas to the USA were from Jamaica in the 1870s, and were organized by Lorenzo Dow Baker, who later founded the Boston Fruit Company, which later became the United Fruit Company, now Chiquita Brands International.

Banana exports from Mexico have risen rapidly in recent years and reached 307,000 metric tons in 2012 (compared to 60,000 tons in 2005), worth about 140 million dollars. The USA is the world’s largest importer of bananas and Mexico’s main foreign market, receiving 80% of all exports of Mexican bananas.

Source for history of bananas:

  • Jenkins, Virginia S. Bananas: An American History. Washington: Smithsonian Institution, 2000

Other posts related to agricultural products:

Mar 062014
 

In The market for commercial and industrial real estate in Mexico, we looked at a recent snapshot of the industrial real estate market in the last quarter of 2013, and saw how cities in the Bajío Region were outpacing cities in Central Mexico or Northern Mexico. (The snapshot came from the report ‘Industrial Markets in México (Q4 2013)‘ by Jones Lang LaSalle, a global real estate services firm.)

In this post, we take a look at the “Industrial Property Clock” for the same period, from the same report.

Industrial property clock (Jones Lang LaSalle)

Industrial property clock (Jones Lang LaSalle)

In general, cities in Central Mexico and in the Bajío are well “ahead” of cities in northern Mexico on this clock. The analysis by Jones Lang LaSalle suggests that the commercial and industrial property markets in Mexico City, Guanajuato, Guadalajara, San Luis Potosí, Puebla and Toluca are “peaking”. The two remaining cities in the Bahío (Querétaro and Aguascalientes) are joined by several cities in northern Mexico in the “rising market” portion of the graph, while Reynosa, Matamoros, Nuevo Laredo and Chihuahua are anchored in the “bottoming market” portion.

The following quotes are taken from the report:

Mexico City’s industrial market grows its footprint annually; rents have grown to pre-crisis levels

Puebla market is very tight; land is scarce and vacancy is at a low

Toluca market has been growing as an alternative to Mexico City, it is also attracting local businesses

Guanajuato is growing in several submarkets like Silao and Celaya thanks to car manufacturing and food related businesses

Guadalajara keeps occupying space and growing at El Salto and South Periférico

San Luis Potosí keeps attracting new industries related to consumer goods. The car manufacturing industry is taking advantage of the city’s communications and infrastructure

Querétaro has been active inaugurating new developments near the airport both for the aerospace business and for car manufacturing. These industries have taken advantage of the local educated labor force

Aguascalientes seems to be the new frontier for developers: at least three major national developers have inaugurated parks in this market, one of them is Nissan’s supplier park

Tijuana continues its path towards quickly becoming a speculative development marketplace once again. It is the first border city to regain this business climate

Nogales, the smallest of the Northwest Border region cities, is also enjoying the expansion of Kimberly Clark (KCI) leasing vacant space within the Nuevo Nogales Industrial Park

Ciudad Juárez keeps lowering the existing vacancy rate

Monterrey submarkets have been improving, especially Apodaca and Santa Catarina, where land prices and rents are growing

Nuevo Laredo, Reynosa and Matamoros have seen a slow down in their activities, however, tenants have stayed at their buildings; there are no new developments on the horizon and vacancy rates are around 10%

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The number of small farms in Mexico is growing

 Excerpts from Geo-Mexico, Updates to Geo-Mexico  Comments Off on The number of small farms in Mexico is growing
Mar 032014
 

The uneven distribution of farmland in Mexico was one of the fundamental causes of the Mexican Revolution in 1910, but by no means the only one. Landless campesinos (peasant farmers) lacked any way to control their own supplies of food. Revolutionary leaders called for the expropriation of the large estates or haciendas, which had been the principal means of agricultural production since colonial times, and the redistribution of land among the rural poor. A law governing this radical change in the land tenure system came into force in 1917 and the process has continued, albeit sporadically, into modern times.

About half of all cultivated land in Mexico was converted from large estates into ejidos, a form of collective farming. In most ejidos, each individual ejidatario has the rights to use between 4 and 20 hectares (10-50 acres) of land, depending on soil quality and whether or not it is irrigated. In addition, members of the ejido share collective rights over the use of local pasture and woodland.

By 1970 land redistribution had been more or less completed. Even so, most farming land still remained in the hands of a very small minority of farmers (Figure 15.2). Only 1% of farms were larger than 5000 hectares (12,355 acres) but between them they shared 47% of all farm land. Meanwhile, 66% of farms were smaller than 10 hectares (25 acres) yet they shared only 2% of all farm land.

Have things improved since then?

The 2007 farm census (see graphic) revealed that two-thirds (66.4%) of all farms are under 5 hectares (12.4 acres) in area; this percentage has remained roughly the same over the past 40 years. Between them, they farm just 6.2% of Mexico’s total farmland.

The number and size of farms, 2007

The number and size of farms, 2007 (updated Figure 15.2 of Geo-Mexico). Data: INEGI. Credit: Tony Burton / Geo-Mexico

The number of small farms has increased since 1970, but so has the total number of farms. Between 1991 and 2007, there was a 55.2% increase in the number of farms under 2 hectares in area, and a 45.4% increase in the total area they worked.

There is no solid data for why the number of microfarms has increased, but it may be partially explained by larger farms being split into smaller pieces (one for each family member) following the death of their original owner.

Most tiny farms are likely to be family-run, producing crops largely for subsistence, rather than for market. Small plots of land are likely to prove uneconomic and unsustainable to farm; it is impossible to generate sufficient profit from them for a family to enjoy a decent livelihood.

In one study, Enrique de la Madrid Cordero, writing for Financiera Rural, calculated that a typical smallholding of 5 hectares, planted with corn (maize) could generate a profit for the owner of about $4000 pesos. This profit represents 6 months work. At the time of his study, someone earning minimum wage for the same six months would have received a total of almost $10,000 pesos. The precise numbers vary, depending on average yields and the crops planted, but cultivating a smallholding is obviously not an easy way to make a living.

These same farmers are unable to advance since they have no means of accessing credit, having no suitable assets to offer as collateral, even if they could ever afford to pay the interest! Similarly, they do not have the savings to invest in improved equipment, higher cost seeds or to introduce new techniques or technology. They are, essentially, trapped in a cycle of poverty.

At the other end of the scale, a very small percentage of farms in Mexico are very large indeed. Nationwide, 2.2% of farms account for 65.1% of the total area farmed in the country. Larger farms are commercial operations, sometimes multinational operations. Their size and profitability ensures they have ready access to credit, and can adopt new technologies and methods relatively quickly.

The uneven distribution of land in Mexico clearly remains an issue, one that is likely to impact social justice agricultural output and productivity for decades to come.

Related posts:

Geo-Mexico has many other agriculture-related posts (easily found via our tag system). They include posts about the geography of growing/producing Christmas trees, cacao, honey, sugarcane, coffee, chiles, floriculture, tomatoes, tequila, horticultural crops and oranges. Also worth reading are:

The market for commercial and industrial real estate in Mexico

 Mexico's geography in the Press, Other  Comments Off on The market for commercial and industrial real estate in Mexico
Mar 012014
 

A recent snapshot of the industrial real estate market in the last quarter of 2013 compares progress in three industrial regions in Mexico: Northern Mexico, Central Mexico and the Bajío Region. The snapshot comes from the report ‘Industrial Markets in México (Q4 2013)‘ by Jones Lang LaSalle, a global real estate services firm specializing in commercial property management, leasing, and investment management.

Cities included in industrial real estate study

Cities included in industrial real estate study (Jones Lang LaSalle)

The pattern of commercial and industrial real estate in Mexico

The five main cities of the Bajío Region (Aguascalientes, Guadalajara, Guanajuato, Querétaro and San Luis Potosí) are booming in terms of commercial and industrial real estate. In the final quarter of 2013, the region added about 550,000 m2 of commercial and industrial space. This was more than double the additional space added in Central Mexico (Mexico City, Toluca and Puebla) and close to the total amount (614,000 m2) spread between 10 cities in northern Mexico (see map).

In the North Region, “Tijuana has been occupying vacant space… and Ciudad Juárez is on its way to recovering from low rents and high vacancy”, while the automotive sector is driving growth in Saltillo-Ramos Arizpe.

The Central Region is helped “by third party logistics companies that grow their business and footprint in Mexico City’s surroundings”, while “Toluca and Puebla grew mainly because of the car manufacturing demand for space.” Commercial rents rose in Mexico City and in Toluca. “Big Box requirements keep driving this market. Development has been very active at the Tepotzotlán toll booth surroundings.”

The Bajío Region has consolidated “with new industrial parks related not only to the new car manufacturing plants, but also for new investments related to aerospace, food and personal consumer” products.

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