ECONOMIC BACKGROUND

Nearby Production and Consumption Centers

Valladolid is connected with the main towns and production centers of the area. To the north with the cattle breeding and fishing zones, to the south with the agriculture and citric zone of the Yucatán peninsula, with Felipe Carrillo Puerto and Chetumal in the state of Quintana Roo. To the east with the tourist zone of Cancún-Tulum and to the west with Chichén-Itzá, Mérida and Progreso Port. Valladolid is located in the center of an influential economic network of 100 km. around and due to the effective communication that connects it eith all the area, it becomes easy to concentrate all products there. Valladolid stands as the center of the east region of the Yucatán peninsula in an area conformed by four districts of rural development with agricultural, cattle breeding and fishing activities, in Valladolid, Tizimín, Cancún and Felipe Carrillo Puerto. They cover a territorial extension of 40,630 KM2 this area is known as the peninsula’s east central economic zone. The federal goverment’s Department of Agriculture and Hydraulic Resources (SARH) carries out a number of very ambitious developmental programs such as the Agricultural Extension Program that aims to achieve an integral modernizing of the area.

This program includes the following points

-Feasibility studies of possible crops by parcel, municipality and rural district.

-Technological catalog classification

-Technological transfer of improved corn

-Technological transfer of citrics

-Technological transfer of vegetables

-Specialized advisors contracting promotion

-Producers organization for the national use and ordinance of the soil implementing reforesting and consecutive use of the land.

-Impulse and promotion to producer’s organizations through participating association with private enterprise.

-Fiel support programs.

-Training to agricultural promoters of the solidarity National Program to spread technological transferences.

-Basic orientation to producers on credits, intake, market prices, etc.

-Reproductive process of products with great demand in national and international markets.

-Meetings on basic information of the role and up-to date policies of the cattle and crop raising departments.

The Federal Government, supported the creation of organisms such as the Cattle and Farming Support Service for Marketability (ASERCA). The objective of ASERCA is to open spaces to the cattle and crop breeding industry to move into the free market on conditions of clear equality considering the time it takes /to create such markets. To do this, it is necessary to develop this marketing within the following premises:

-To create macroeconimic conditions close to international standards.

-To maintain tariff level high enough to compesate the implicit costs of international wholesale marketing.

-To train and induce producer’s organization

-To operate and supervice seasonal programs of support to producers.

-To create an efficient and integral information system on the national and international markets to spread the market’s conditions between producers, consumers, investors, etc.

-To support the efforts already being done by other departments.

-To make profound diagnosis on marketing problems.

-To implement and develop lines of credit on the financial system with rates and installments competitive for marketing

-To channel financial “after harvest” support with greater margins, efficiency  and lower costs.

-To promote the construction of basic infrastructure in special producing zones throungh capital investing societes

-To support proyects for the creation, modernization and rehabilitation on industrial land plants.

-To promete participation of business specialized in national and international marketing.

-To remove obstacles that could prevent the national production flow into international markets.

-To favor price creation having into consideration the international markets.

-To create basic infrastructure in México to carry out purchase and sales operations and promote relationships between producers and consumers to satisfy the market needs, to develop rules, contracts and or dinances, to have a universal exchange rate, to attract large volumes of risk capitals, to offer an alternative market, to reduce prices to consumers, to reduce the high costs of inventory, to ease the price  risk coverage and to operate as a  center of information on price creation, offer, demand, climate, transportation, quality, cost of money, etc.

Agriculture

            Valladolid has a large area where a diversity of agricultura activities take place.

There  are two cycles when harvesting is dine: The spring summer cycle (P.V.) and the autumn-winter cycle (O.I). The last one is used for seasonal crops. There is also a permanent cycle for specific crops.

During the spring-summer cycle, corn in its different varieties is planted along with creole beans and squash, green pepper, watermelon and others. There are approximately 12,950 producers using this areas mainly in the form of  “Milpas”. “Milpa” is an area of  less than 4 hectareas used for corn fields. They account for 62,532 ha. The “Milpa” is harvested in the traditional system of cut, tumble and burn (R.T.Q.) the original, vegetation (jungle). This is done before the rainy season so that the seed is planted before the first rain falls.

There has been an increase in agricultural investigation to find other kind of crops, and the possibility to apply technology and give greater financial support so that the land could be used for a longer periods of  time without depleting the soil as it occurs with the traditional system.

The productivity of this kind of  harvest is low. Because of it there has been improvements made in a variety of seeds such as the U-533 for rocky soils, the V-528, V-527, and V-532 for luvisols soils. These seeds are planted along with beans, squash and other vegetables and have produced over two tons per hectare, a greater result than with corn alone.

An experimental form of hasvesting has been  started in the area: smal garden produce. This is based on Israel’s technology and has had good results so far in quality, flavor and cost, for potato, carrot, squash and green  beans. It occupies a minimun of working space and because of its success, there are plans to extend the system’s technology. There are 923 producers that work in an area  of 1,000 ha. Where an irrigation system has been installed. This area is mostly used for citrics and vegetables, the last an a smaller amount using only 200 ha. of the area.

Forestal Section

The district counts with 186,000 hectareas of low brush and 325,432 hectareas of Acahuales and due to the traditional agricultural ways this brush tend to decrease. Since 1989, in coordination with the Forest Department replanting programs are being promoted and excuted with wood species of commercial type and so far 2,350 hectareas have been replanted with different tree species (red cedar, mahagony and hackberry). Now the owners have to replant their areas and are given the plants and the technologycal advise to do so. There is also a promotion to plant red cedar along with corn.

As far as the program of fire protection is concerned, 26,000 hectareas were supervised and inspected and information and forestal cultural meetings were held in 85 communities to fight big fires. Municipal boards were formed to make plans to save the forest and this year a greater impulse with social participation will be given to replanting. Today’s agricultural production areas are:

Territorial area                                     795,401 Ha. 100%

Potential area                                       241,192 Ha.   30%

Area in use                                             63,461 Ha.     8%

Today’s harvest area in use are as follows:

Seasonal area                           62,532 Ha.

Watering area                               926 Ha.

TOTAL                                   63,461 Ha.     

Note that there is a potential area for harvesting of 241,192 ha. that represent 30% of the rural district and being Valladolid, the district’s center it is its responsability to develop them.

Below there is listing of the main crops, its yielding, extension and production.

Apiculture

Yucatán is the region with greater apicultural production and Valladolid is the greatest honey collector center with an average of 8,000 tons per season, The production of honey’s derivatives have a great acceptance on the world market and the queen’s royal jel, beeswax and vitamin supplement products are on top of the list of higher demand. There are two kinds of honey produced in the area: thick and thin both with 27% photomatric transparency amber color, flowery smell, nice flavor and an average himidity of 18%. The collection is done through independent producers that take it to callection centers or honey processing plants. There are 6 such centers in Valladolid.

Bird and cattle breeding

There has been good results in the cattle breeding zone of bovine, porcine and bird-raising activities. There are also two milk collecting centers.

There is an area of 180,000 hectareas being used for breeding and raising 30,000 heads of cattle of different species. There are 760 cattle breeding units out of which 20% are commons producers and the other 80%, small propietors. The area’s soil has a great potential for cattle breeding exploitation. The races of cattle bred in the area are mainly: zebú, brahman, hindubrazil, gyr, charolais, guzerat and creole among others.

The herd has shown a great improvement in the quality of the meat so that it has a preferential acceptance in the peninsula’s market and in the Mexico’s federal district where is distributed from the slaughter house, located in Tizimín. In this slaughter house the best animals are selected to produce fine cuts or American type cuts that have great demand in tourist centers and in the peninsula’s main cities. It is worth mentioning that Valladolid is the commercial center of the region with cattle breeding activity and it is from here that the supply is sent to Cancún, Chetumal and Mérida, among others. The cattle’s skin covers the artisans low demand. So most of it is sent to the country’s shoe industry centers without any kind of treatment.

The milk production is just starting as there are still very few cattle owners that have it as their main activity.

Fishing

Valladolid is located 100 kms. from the northern coast of the Yucatán peninsula. The main fishing ports on the coast near the city are: El cuyo, San Felipe, Río Lagartos and Dzilam bravo.

The boats used for this activity are predominantly riparians, 25 ft. long with out-board motor. The fleet has approximately 25,000 boats throughout the coast. The type of fishing is “traditional” and new fishing techniques are applied daily. The captured species of greater commercial value are:   -Of scales: Gruper, plastron (a specie of sawfish) dog snapper, drumfish and in lower scale red snapper and sea robin, caranx, perch, sharks and baby sharks, barracuda, and chacchi for regional markets.

-Mollusk: Octopus (with an of- season from December 15 to august lst.), black shellfish, aquid and chivitas.

_Crustacean: Lobster.

Studies are being made in the swamp estuary to breed shrimp, starting in Punta Caracol and ending in San Felipe (approximately 80 kms.). It is important to notice that the main species captured is grouper which sizes vary from 10 to 400 kgs. Some of the scale species are processed in Valladolid to supply fish filet to restaurants of the area, specially Cancún,Chichén-Itzá and Valladolid itself.

Electricity

Valladolid is part of the  national electric network and its supply is supported by the thermoelectrical central of the Electricity Commission, which is located 4 kms. Southeast from the  city. This central started operations in 1991 and it has a production capacity of 295 Mw.

Communication

Roads.

Valladolid counts with an ample and important highway network that connect the main cities, ports, production centers and tourist centers of the area. The tollroad Mérida-Valladolid-Cancún has become the main communication axel in the north of the peninsula communicating the most important cities of the area with Valladolid in the center both, distances and transport time are shortened.

The federal highway 180 communicates Valladolid with many paved secondary roads are connected to it communicating other municipalities and rural roads that lead  to farms and countryside communities.

Railroad.

In Valladolid is located the broad-way terminal that connects it from Mérida to the rest of the country. Mexico’s National Railroad operates it. Mexico’s National Railroads has a classified service for produce transportation from lst. To 2^th class.

Chichen Itza International Airport

A new International Airport is nearly completed near Valladolid ( 12 minutes) which will allow travelers easier access to the heartland of the Maya. The airport construction holds with the stone and wood motif of the Maya and is considered to be a work of art in its own right.

Telecommunications.

Valladolid has a central of México’s telephone company with a capacity for 5,000 lines, being now in service 3,500. There is national and international long distance service and shortly the cellular telephone will be establish. there are also postal and telegraph offices, national and international delivery services, two A.M. radio stations and transmitters with coverage throughout the peninsula, T.V. with cable, two reception T.V. stations and transmitters on a national level, telephone booths and computerized public faxes, printing presses and newspaper agencies of known peninsular coverage. There are 2 local Internet service providers to access the World Wide Web.

Cellular telephone.

As of May of 1994 a new transmitting tower was set up in the city for cellular telephone use, for a local area of 10 kms. around. This service has national and international coverage and it has unlimited capacity for telephone lines growth. This allows communication through this service, fax or modem to any part of the world.

Health Services

Valladolid has health centers from the IMSS, ISSSTE, SSA, Red Cross, 10 rural clinics, 11 private clinics and 75 independent medical service centers.

Banking Services

In the city there are branches of banks like Banamex, Bancomer, Bital and Unicreco Servitur, S.A that offer all kind of financial support locally and have national and international coverage.

Government.

Valladolid is the political center of the area. Its municipal authorities are distributed in several departments with offices of several state and federal agencies that offer services to all the inhabitants of the area. The jailhouse and justice department, are settled here and covers the orient of the state of Yucatán.

Business and Public Sevices.

Valladolid is considered as the most important commercial center of the area as it is its main activity. Established business include clothing stores, electric and import articles, food stores, drugstores, shoestores, art and crafts, leather goods, supermarkets, bakeries, tortilla stores, fruit, vegetable and cereal stands, meat market, restaurants, fertilizers and animal foods, fast foods, bars and liquor stores, magazine stands, videoclubs, construction materials, hardware stores, prefabricated products, plumbing and eclectrical stores, sport goods, musical instruments, carpentries, aluminum and glass shops, home appliances, car and bicycle parts, it alos has the following services: Restaurants, hotels, movie theaters, discoteque, travel agencies, car repair shops, gas stations, urban transportation, taxis, public telephone, theater, auditoriun, baseball stadium, sports areas, parks, markets, churches, convent, library, public lighting, potable water, house developing, cementary and land transportation (cargo and passenger).  

a). - Fleet of 300 cargo trucks for federal public service organized in two transport companies with 10 authorized private units that move up to 40 tons.

b). - Fleet of 50 cargo trucks for local service organized in two syndicated groups with units of 30 to 10 tons capacity.

c).- Fleet of 350 cars and station wagons for passengers for city or highway service.

d).- Fleet of 15 urban passengers busses privately owned.

e). - Public passenger transportation privately owned.

Expofair

The tarditional city’s fair takes place every year from January 26 to February 6 and it is celebrated in honor of the Virgin of Candelaria.

The amusement, commercial, cultural and service activities take place in a permanent site built for this purpose on an area of over 30,000 sq mts. located on the west side of the city on 60 and 37 streets and just 300 mts. away from the bus station.

Industry

The following industries are settled in Valladolid: Distributorships: Coca-cola and Cristal, Modelo and Yucateca beer, Bimbo, Fud, Fester products, Comex paint, Cruz azul cement, VW of México, Createx, Hong Ho, Jordage,  there are also the following factories: 7 construction materials, sausages and longaniza, unicel products, liquor and alcohol beverages, light roofing, aloe derivatives, butane gas, two of ice, 4 centers of honey processing and collection, 4 water purifiers, wood mill, leather treatment, hardware, industrial electricity and in process of construction, the Coca-Cola bottling plant.

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