The New Mexico Chile Pepper Industry: Description, Labor Issues, and Economic Impact Presented By: Teri Hall

Objectives: 1.Describe the New Mexico Chile Pepper Industry 2.Describe the current labor situation and labor issues relevant to the New Mexico chile pepper industry; 3.Provide estimates of the industry’s employment and economic impacts on Doña Ana County; 4.Evaluate the economic effects of industry changes.

Agriculture and the Chile Pepper Industry in New Mexico and Dona Ana County

Chile Pepper Imports From Mexico Through New Mexico Ports of Entry

Chile Pepper Acreage Harvested in 1999

New Mexico Chile Pepper Industry

Chile Peppers processed in Southern New Mexico by chile type and growing region

10,000 farm laborers 3 rd grade education 100% Hispanic descent 40% U.S. citizens 20-40% illegal immigrants working Average family is 4.2 people Average household income is $7,000/year Demographics characteristics of hired farm workers in Doña Ana County Source: Local interviews and previously published material

Labor as a percentage of production cost for hand and mechanical chile harvest in Doña Ana and Sierra Counties, 1995, 1997, and *Labor cost divided by total production costs. Source: Eastman, 1997 Hand Mechanical Red Chile41.22%49.07%9.71%11.56% Jalapeños42.57%47.16%6.54%7.79%

Total estimated industry workforce needed by month Source: Eastman, 1996, Processor interviews conducted 5/ /2001

IMpact Analysis for PLANning (IMPLAN) Direct effects Indirect effects Induced Effects Backward linkages Full-time equivalents

Green Chile Pepper, Jalapeño, and Red Chile Industry Input-Output Modeling-Doña Ana and Luna Counties Combined Source: IMPLAN 2001, Model Output

Summary Thesis objectives –Chile pepper processor interviews –Description of the chile pepper industry –Review existing information –Application of IMPLAN

Implications Inaccurate and limited industry data Significant “employment” economic impacts on the local economy

Shortcomings Exercise caution when looking at results Backward linkages Accurate representation of the local economy Agriculture employment data

Recommendations Unanswered questions Create new sector within IMPLAN

Questions?