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Abstract

The economic performance and development prospects of many developing countries are largely dependent on commodity exports. The heavy dependence of such countries on a few commodities has an adverse economic impact. Coffee provides a particularly important share of the export earnings of many developing countries. The world market is largely for high-quality coffee; for this reason, a diversification program in Mexico is important to eliminate dependence on coffee with a low rate of return-in this case, coffee grown in Veracruz in areas under 6500 meters (nearly 2,000 feet) above sea level. This paper evaluates the potential diversification opportunities for this region, particularly for tropical commodities such as papaya, guava, anthurium, and vanilla.

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