Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA

Daniel Hernandez Soto; Alicia Alma Alejos Gallardo; Alicia Casique Guerrero

doi:doi:10.11648/j.ijae.20210601.11

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Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA

Daniel Hernandez Soto, Alicia Alma Alejos Gallardo, Alicia Casique Guerrero

Published in International Journal of Agricultural Economics (Volume 6, Issue 1)

Received: 7 December 2020 Accepted: 15 December 2020 Published: 4 January 2021

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Abstract

USA is the main strawberry importer in the world, so in order to supply the demand in 2018 imported 161,889 t; of which 99.07% were originally from Mexico. This paper is intended to determine the economic viability of increase the exported quantity of Mexican strawberry to USA by representing the international strawberry market in a partial equilibrium model. According with the calculated price flexibility in 2018, an increase of 18% in the strawberry exported quantity to US market causes a decrease in the strawberry international price in 6.6%. With this calculated effects, in a simulated scenario it is estimated that the value of the increase in income due to increase in quantity is USD 98,334,125.89, while the value of the decrease in income due to decrease in price is USD 38,631,068.63. The difference between the two values is an increase of USD 59,703,057.26. With these estimations, it can be claimed that an 18% annual increase in the Mexican strawberry exports to USA is viable from an economic perspective. With this scenario, the Benefit-Cost Ratios (B/C R) for the producers of Baja California, Michoacan and Guanajuato are 1.98, 1.90 and 0.92 respectively. That is to say, with an annual increase of 18% in the exported quantity, to produce strawberry for export to USA in Baja California and Michoacan is profitable, while to produce strawberry for export to US market in Guanajuato is not profitable.

Published in	International Journal of Agricultural Economics (Volume 6, Issue 1)
DOI	10.11648/j.ijae.20210601.11
Page(s)	1-11
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Exports, Imports, International Trade, Strawbe

References

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[2]	United States Department of Agriculture (USDA). Foreign Agricultural Service on line. 2020.
[3]	Ministry of Agriculture and Rural Development (SADER). Agrifood and Fisheries Information Service. 2020.
[4]	Ministry of Economy (SE). Tariff Information System Via Internet. 2020.
[5]	G. W. Williams, International Agribusiness Trade Analysis. Texas A&M. 2006.
[6]	D. Hernandez S., M. T. De la Garza C., E. Guzman S. Competitiveness of the Mexican strawberry for export to USA: a partial equilibrium model. Journal of Globalisation, Competitiveness and Governability. Universia. 5 (3). 102-114, 2011.
[7]	D. Hernandez S. and M. A. Martinez D. Procedure for a partial equilibrium analysis of the Mexican mango (Mangifera indica) exports to USA. Revista Fitotecnia Mexicana. 32 (3). 251-256. 2009.
[8]	D. Hernandez S., F. J. Lopez Ch., A. Casique G. A Partial Equilibrium Analysis of Mexican Mango Exports to the United States. Revista Agricultura, Sociedad y Desarrollo. 17 (1). 171-199. 2020.
[9]	R. J. Carbaugh. International economy. Cengage Learning. Mexico. 15-21, 30-31, 68-70. 2009.
[10]	P. R. Krugman, M. Obsfeld, M. J. Melitz, International economy. Spain, Pearson. 22-28. 2012.
[11]	R. Torres G., Teoría del comercio internacional. México. SXXI. 200-202, 226-228. 2011.
[12]	P. R. Krugman and R. Wells. Introductión to economícs. Spain. Reverté. 14-16. 2010.
[13]	G. W. Williams. International Agribusiness Trade Analysis. Texas A&M University. 2020.
[14]	BEA (Bureau of Economic Analysis). US Economic Accounts. 2020.
[15]	US Census Bureau. Population Finder on line. 2020.
[16]	D. N. Gujarati, and D. C. Porter. Econometrics. México: McGraw-Hill. 2010.
[17]	A. Avila A., A. and D. J. Gonzalez M. Competitiveness of mexican strawberries (fragaria spp.) in the national, regional and USA market. Revista Agricultura, Sociedad y Desarrollo. 9 (1). 17-27.
[18]	O. Capps Jr., G. W. Williams and T. Dang. Effects of lamb promotion on lamb demand and imports. Reports 90492, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center. 2010.

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APA Style

Daniel Hernandez Soto, Alicia Alma Alejos Gallardo, Alicia Casique Guerrero. (2021). Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA. International Journal of Agricultural Economics, 6(1), 1-11. https://doi.org/10.11648/j.ijae.20210601.11

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ACS Style

Daniel Hernandez Soto; Alicia Alma Alejos Gallardo; Alicia Casique Guerrero. Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA. Int. J. Agric. Econ. 2021, 6(1), 1-11. doi: 10.11648/j.ijae.20210601.11

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AMA Style

Daniel Hernandez Soto, Alicia Alma Alejos Gallardo, Alicia Casique Guerrero. Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA. Int J Agric Econ. 2021;6(1):1-11. doi: 10.11648/j.ijae.20210601.11

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@article{10.11648/j.ijae.20210601.11,
  author = {Daniel Hernandez Soto and Alicia Alma Alejos Gallardo and Alicia Casique Guerrero},
  title = {Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA},
  journal = {International Journal of Agricultural Economics},
  volume = {6},
  number = {1},
  pages = {1-11},
  doi = {10.11648/j.ijae.20210601.11},
  url = {https://doi.org/10.11648/j.ijae.20210601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20210601.11},
  abstract = {USA is the main strawberry importer in the world, so in order to supply the demand in 2018 imported 161,889 t; of which 99.07% were originally from Mexico. This paper is intended to determine the economic viability of increase the exported quantity of Mexican strawberry to USA by representing the international strawberry market in a partial equilibrium model. According with the calculated price flexibility in 2018, an increase of 18% in the strawberry exported quantity to US market causes a decrease in the strawberry international price in 6.6%. With this calculated effects, in a simulated scenario it is estimated that the value of the increase in income due to increase in quantity is USD 98,334,125.89, while the value of the decrease in income due to decrease in price is USD 38,631,068.63. The difference between the two values is an increase of USD 59,703,057.26. With these estimations, it can be claimed that an 18% annual increase in the Mexican strawberry exports to USA is viable from an economic perspective. With this scenario, the Benefit-Cost Ratios (B/C R) for the producers of Baja California, Michoacan and Guanajuato are 1.98, 1.90 and 0.92 respectively. That is to say, with an annual increase of 18% in the exported quantity, to produce strawberry for export to USA in Baja California and Michoacan is profitable, while to produce strawberry for export to US market in Guanajuato is not profitable.},
 year = {2021}
}

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TY  - JOUR
T1  - Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA
AU  - Daniel Hernandez Soto
AU  - Alicia Alma Alejos Gallardo
AU  - Alicia Casique Guerrero
Y1  - 2021/01/04
PY  - 2021
N1  - https://doi.org/10.11648/j.ijae.20210601.11
DO  - 10.11648/j.ijae.20210601.11
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 1
EP  - 11
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20210601.11
AB  - USA is the main strawberry importer in the world, so in order to supply the demand in 2018 imported 161,889 t; of which 99.07% were originally from Mexico. This paper is intended to determine the economic viability of increase the exported quantity of Mexican strawberry to USA by representing the international strawberry market in a partial equilibrium model. According with the calculated price flexibility in 2018, an increase of 18% in the strawberry exported quantity to US market causes a decrease in the strawberry international price in 6.6%. With this calculated effects, in a simulated scenario it is estimated that the value of the increase in income due to increase in quantity is USD 98,334,125.89, while the value of the decrease in income due to decrease in price is USD 38,631,068.63. The difference between the two values is an increase of USD 59,703,057.26. With these estimations, it can be claimed that an 18% annual increase in the Mexican strawberry exports to USA is viable from an economic perspective. With this scenario, the Benefit-Cost Ratios (B/C R) for the producers of Baja California, Michoacan and Guanajuato are 1.98, 1.90 and 0.92 respectively. That is to say, with an annual increase of 18% in the exported quantity, to produce strawberry for export to USA in Baja California and Michoacan is profitable, while to produce strawberry for export to US market in Guanajuato is not profitable.
VL  - 6
IS  - 1
ER  -

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Author Information

Daniel Hernandez Soto

Management and Economic Department, Celaya Institute of Technology, Celaya, Mexico
Alicia Alma Alejos Gallardo

Management and Economic Department, Celaya Institute of Technology, Celaya, Mexico
Alicia Casique Guerrero

Management and Economic Department, Celaya Institute of Technology, Celaya, Mexico

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APA Style

Daniel Hernandez Soto, Alicia Alma Alejos Gallardo, Alicia Casique Guerrero. (2021). Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA. International Journal of Agricultural Economics, 6(1), 1-11. https://doi.org/10.11648/j.ijae.20210601.11

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ACS Style

Daniel Hernandez Soto; Alicia Alma Alejos Gallardo; Alicia Casique Guerrero. Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA. Int. J. Agric. Econ. 2021, 6(1), 1-11. doi: 10.11648/j.ijae.20210601.11

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AMA Style

Daniel Hernandez Soto, Alicia Alma Alejos Gallardo, Alicia Casique Guerrero. Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA. Int J Agric Econ. 2021;6(1):1-11. doi: 10.11648/j.ijae.20210601.11

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@article{10.11648/j.ijae.20210601.11,
  author = {Daniel Hernandez Soto and Alicia Alma Alejos Gallardo and Alicia Casique Guerrero},
  title = {Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA},
  journal = {International Journal of Agricultural Economics},
  volume = {6},
  number = {1},
  pages = {1-11},
  doi = {10.11648/j.ijae.20210601.11},
  url = {https://doi.org/10.11648/j.ijae.20210601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20210601.11},
  abstract = {USA is the main strawberry importer in the world, so in order to supply the demand in 2018 imported 161,889 t; of which 99.07% were originally from Mexico. This paper is intended to determine the economic viability of increase the exported quantity of Mexican strawberry to USA by representing the international strawberry market in a partial equilibrium model. According with the calculated price flexibility in 2018, an increase of 18% in the strawberry exported quantity to US market causes a decrease in the strawberry international price in 6.6%. With this calculated effects, in a simulated scenario it is estimated that the value of the increase in income due to increase in quantity is USD 98,334,125.89, while the value of the decrease in income due to decrease in price is USD 38,631,068.63. The difference between the two values is an increase of USD 59,703,057.26. With these estimations, it can be claimed that an 18% annual increase in the Mexican strawberry exports to USA is viable from an economic perspective. With this scenario, the Benefit-Cost Ratios (B/C R) for the producers of Baja California, Michoacan and Guanajuato are 1.98, 1.90 and 0.92 respectively. That is to say, with an annual increase of 18% in the exported quantity, to produce strawberry for export to USA in Baja California and Michoacan is profitable, while to produce strawberry for export to US market in Guanajuato is not profitable.},
 year = {2021}
}

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TY  - JOUR
T1  - Impacts on Profitability for the Mexican Strawberry Producers Due to an Increase in Exports to USA
AU  - Daniel Hernandez Soto
AU  - Alicia Alma Alejos Gallardo
AU  - Alicia Casique Guerrero
Y1  - 2021/01/04
PY  - 2021
N1  - https://doi.org/10.11648/j.ijae.20210601.11
DO  - 10.11648/j.ijae.20210601.11
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 1
EP  - 11
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20210601.11
AB  - USA is the main strawberry importer in the world, so in order to supply the demand in 2018 imported 161,889 t; of which 99.07% were originally from Mexico. This paper is intended to determine the economic viability of increase the exported quantity of Mexican strawberry to USA by representing the international strawberry market in a partial equilibrium model. According with the calculated price flexibility in 2018, an increase of 18% in the strawberry exported quantity to US market causes a decrease in the strawberry international price in 6.6%. With this calculated effects, in a simulated scenario it is estimated that the value of the increase in income due to increase in quantity is USD 98,334,125.89, while the value of the decrease in income due to decrease in price is USD 38,631,068.63. The difference between the two values is an increase of USD 59,703,057.26. With these estimations, it can be claimed that an 18% annual increase in the Mexican strawberry exports to USA is viable from an economic perspective. With this scenario, the Benefit-Cost Ratios (B/C R) for the producers of Baja California, Michoacan and Guanajuato are 1.98, 1.90 and 0.92 respectively. That is to say, with an annual increase of 18% in the exported quantity, to produce strawberry for export to USA in Baja California and Michoacan is profitable, while to produce strawberry for export to US market in Guanajuato is not profitable.
VL  - 6
IS  - 1
ER  -

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