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An Application of USDA’s Food Dollar Method to Mexico

Author

Listed:
  • Zahniser, Steven
  • Ortega Díaz, Araceli
  • Hernández García, Víctor Hugo
  • Solís y Arias, José Valentín
  • Gallegos, Clarissa

Abstract

In this report, the USDA, Economic Research Service (ERS) Food Dollar methodology is applied comprehensively to Mexico for the first time to analyze food expenditure shares across industry groups and factors of production during 2003–18. The annual farm share of Mexico’s food expenditures averaged 22.1 percent for food at home (FAH) expenditures and 4.0 percent for food away from home (FAFH) expenditures. Embedded imports—imported inputs used in domestic food production—accounted for a rising share of Mexico’s FAH expenditures: 18.4 percent in 2018 versus 13.4 percent in 2003. Most of these imported inputs came from the United States. When the expenditure shares for Mexico were decomposed into industry groups comprising the food value chain, FAH relies on wholesale and retail services and food processing, while FAFH depends heavily on food services. Application of this methodology to Mexico also allows for comparisons with the data series for the United States in USDA, ERS’s Food Dollar data product.

Suggested Citation

  • Zahniser, Steven & Ortega Díaz, Araceli & Hernández García, Víctor Hugo & Solís y Arias, José Valentín & Gallegos, Clarissa, 2026. "An Application of USDA’s Food Dollar Method to Mexico," Economic Research Report 397828, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersrr:397828
    DOI: 10.22004/ag.econ.397828
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