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February 2001 Edition
Mexico’s Peanut Butter/Paste Exports to the U.S. Grow Substantially during the latter half of 2000
During the period from August to November 2000, imports of peanut butter/paste from Mexico have grown nearly 7-fold compared to the same period in 1999. As a consequence, imports for the first 4 months of the 2000/01 peanut marketing year have already exceeded the total for all of 1999/00 (1,631 tons vs. 1,121 tons). Most peanut butter/paste imports, along with peanut imports, are limited by a tariff rate quota (TRQ). Under NAFTA, imports of peanuts and peanut butter/paste from Canada and Mexico are allowed to enter duty-free. Though quantity limits exist for Mexican peanuts and Canadian produced peanut butter/paste, imports of peanut butter/paste from Mexico manufactured using Mexican grown peanuts face no import restrictions. In addition, Mexican produced peanut butter/paste enjoys a price advantage over domestically produced product made with higher priced quota peanuts. Expectations are that growth in peanut butter/paste imports from Mexico will continue. With Mexico’s peanut production currently at 135,000 MT, there appears to be ample domestic production to fuel continued growth in exports of peanut butter/paste to the United States. However, despite the increase, imports of peanut butter/paste from Mexico will continue to represent only a small fraction of total U.S. peanut consumption.
Approved by the World Agricultural Outlook Board/USDA
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