The impact of the tomato agroindustry on the rural poor in Mexico

Abstract This article addresses the issue of whether the tomato agroindustry (TAI) has been an effective instrument in the reduction of rural poverty. The TAI is by far the most important agroindustry in Mexico in terms of exports and employment creation. Most of the laborers employed by the TAI in northwest Mexico are temporary migrants coming from poverty‐stricken regions in southern Mexico. Conditions of poverty‐induced migration are explained. The characteristics and strategies of large, modern tomato enterprises are analyzed. The main conclusion is that migrant income earned in the tomato fields and packing plants, is fundamental for the bare survival in villages in poverty‐stricken regions. However, this does not provide a solution to poverty alleviation because migrant income is not sufficient to contribute to capital formation in the migrating communities, or the to create the conditions for endogenous local development.