Economics of the Coffee Crisis in Mexico

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Adelita O Dell-­‐Morrow December 2009


¡  Mexico has heavy dependency on coffee ¡  Collapse of the International Coffee

agreement ¡  Coffee market unfamiliar with Free-­‐market economy


¡  Poverty ¡  Malnutrition ¡  Migration

¡  Narco-­‐farmers and traffickers ¡  Revolution in state of Chiapas


¡  Mexico s general income drops 70% ¡  Impoverishment rises 39-­‐43% ¡  Gini coefficient rises

¡  Growers receive less of the Total revenue less ¡  Coffee growers debt ¡  Cycle of poverty



¡  10-­‐12% of Mexicans are malnourished ¡  Rural and coffee-­‐growing regions most

effected ¡  Food costs rise ¡  Child population effected most §  Infant mortality §  Child size


¡  Growers take drastic measures out of

desperation ¡  Coffee crisis triggers increase in drug crops §  Coffee growers switch crops §  Drug crop cultivation levels increase 1989

¡  Major supplier to U.S.

§  Producing heroin, methamphetamine §  Smuggling cocaine


¡  Drug gangs and cartels increase ¡  Torture, kidnapping, rape, murder increase ¡  Law enforcement becomes inactive

Mexican Drug Tunnel


¡  Triggered by unemployment ¡  Veracruz has drastic numbers migrating ¡  Communities disintegrate ¡  Families loose men ¡  Risking death to

cross U.S. Border


¡  Hardest hit by coffee crisis ¡  Poverty triggers revolution ¡  Zapatista Army of National Liberation (EZLN) ¡  Life worsens

§  More deaths §  More malnutrition


¡  Unemployment ¡  Poverty ¡  Malnutrition

¡  Looking for other options §  Drug trade §  Migration

¡  Zapatista rebel in Chiapas


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