Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market

Daniel Hernandez Soto; Maria del Carmen Cornejo Serrano; Patricia Galvan Morales

doi:doi:10.11648/j.ijaas.20220802.15

| Peer-Reviewed

Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market

Daniel Hernandez Soto, Maria del Carmen Cornejo Serrano, Patricia Galvan Morales

Published in International Journal of Applied Agricultural Sciences (Volume 8, Issue 2)

Received: 28 February 2022 Accepted: 17 March 2022 Published: 23 March 2022

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Mexico is the main exporter of avocado in the world, while Canada is the seventh importer. To meet its domestic demand, Canada imports about 93.73% of avocados from Mexico. It is worth mentioning that, between 2003 and 2018, the average annual growth rate of Mexican avocado imports in Canada was 14.72%; while, from 2019 to 2021, this same rate averaged -4.65, that is, in this period Mexican avocado imports in Canada fell at an average annual rate of 4.65%. This research aims to determine the viability of increasing the annual growth rate of Mexican avocado exports to the Canadian market. To carry out the work, the avocado market between Mexico and Canada was represented in an econometric model and, with the results, a partial equilibrium analysis was carried out, simulating a 50% annual increase in exports. The results show that an increase in the amount of Mexican avocado exported to the Canadian market that results in an average annual growth rate of 50% is viable in terms of income. The simulation shows that the Benefit/Cost Ratio (B/C R) in avocado production for the states of Jalisco, Michoacan and the State of Mexico, in the hypothetical scenario, would be 1.4831, 1.4257 and 1.5322 respectively.

Published in	International Journal of Applied Agricultural Sciences (Volume 8, Issue 2)
DOI	10.11648/j.ijaas.20220802.15
Page(s)	92-103
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), 2022. Published by Science Publishing Group

Keywords

Avocado, Exports, Imports, International Trade, Profitability

References

[1]	Food and Agricultural Organization (FAO). (2022). Faostat.
[2]	Trade Data Online (TDO). (2022). Report – Trade Data Online. Canada.
[3]	Ministry of Economy (SE). (2022). Tariff Information System Via Internet. Mexico.
[4]	Williams, G. W. (2022). International Trade Agribusiness Analysis. Texas A&M. University.
[5]	Hernandez S., D. Alejos G., A. A. & Casique G., A. (2021). Impacts on Profitability for the Mexican Strawberry Producers due to an Increase in Exports to USA. International Journal of Agricultural Economics. 6 (1). Pp. 1-11. Doi: 10.11648/j.ijae.20210601.11.
[6]	Williams, G. W., Capps Jr., O. & Bessler, D. A. (2004). Florida orange grower returns from orange juice advertising. TAMRC Consumer and Product. USA.
[7]	Hernandez S., D.; Lopez Ch., F. J. & Casique G., A. (2020). A Partial Equilibrium Analysis of Mexican Mango Exports to the United States. Revista, Agricultura, Sociedad y Desarrollo. 17 (1). 171-199. https://revista-asyd.mx/index.php/asyd/article/view/1327.
[8]	Torres G., Ricardo. (2011). International Trade Theory. Mexico. SXXI. 200-202, 226-228.
[9]	Carbough, R. J. (2009). International Economics. Mexico. Cengage Learning. 15-21, 30-31, 68-70.
[10]	Krugman, P. R.; Obsfeld, M. & Melitz, M. J. (2012). International Economics. Spain. 22-28.
[11]	Krugman, P. R. & Wells, R. (2010). Microeconomics. Spain. Reverté. 14-16.
[12]	Hernandez S., D. & Martinez D., M. A. (2009). Procedure for a Partial Equilibrium Analysis of the Mexican Mango (Mangifera indica) Exports to USA. Revista Fitotecnia Mexicana. 32 (3). 251-256. https://www.revistafitotecniamexicana.org/documentos/32-3/10a.pdf.
[13]	Bank of St. Louis. (2022). Federal Reserve Economic Data.
[14]	Ministry of Agriculture and Rural Development (SADER). (2022). Agrifood and Fisheries Information Service.
[15]	Rodriguez C., V.; Bao G., R. & Cardenas L., L. (2015). Formulation and evaluation of projects. Mexico. Limusa. 375-377.
[16]	Hernandez S., D. & Gonzalez F., J. P. (2022). Competitiveness Analysis of Exporting Mexican Avocado to United States of America. Journal of Globalisation, Competitiveness and Governability. 16 (1). 66-80. Doi: 10.3232/GCG.2022.V16.N1.03.
[17]	Capps Jr., O., Williams, G. W. & Dang, T. (2010). Effects pf lamb promotion on lamb demand and imports. Reports 90492, Texas A&M University. Agribusiness, Food, and Consumer Economic Research Center. 2010.

Cite This Article

Plain Text BibTeX RIS

APA Style

Daniel Hernandez Soto, Maria del Carmen Cornejo Serrano, Patricia Galvan Morales. (2022). Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market. International Journal of Applied Agricultural Sciences, 8(2), 92-103. https://doi.org/10.11648/j.ijaas.20220802.15

Copy | Download

ACS Style

Daniel Hernandez Soto; Maria del Carmen Cornejo Serrano; Patricia Galvan Morales. Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market. Int. J. Appl. Agric. Sci. 2022, 8(2), 92-103. doi: 10.11648/j.ijaas.20220802.15

Copy | Download

AMA Style

Daniel Hernandez Soto, Maria del Carmen Cornejo Serrano, Patricia Galvan Morales. Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market. Int J Appl Agric Sci. 2022;8(2):92-103. doi: 10.11648/j.ijaas.20220802.15

Copy | Download

@article{10.11648/j.ijaas.20220802.15,
  author = {Daniel Hernandez Soto and Maria del Carmen Cornejo Serrano and Patricia Galvan Morales},
  title = {Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market},
  journal = {International Journal of Applied Agricultural Sciences},
  volume = {8},
  number = {2},
  pages = {92-103},
  doi = {10.11648/j.ijaas.20220802.15},
  url = {https://doi.org/10.11648/j.ijaas.20220802.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijaas.20220802.15},
  abstract = {Mexico is the main exporter of avocado in the world, while Canada is the seventh importer. To meet its domestic demand, Canada imports about 93.73% of avocados from Mexico. It is worth mentioning that, between 2003 and 2018, the average annual growth rate of Mexican avocado imports in Canada was 14.72%; while, from 2019 to 2021, this same rate averaged -4.65, that is, in this period Mexican avocado imports in Canada fell at an average annual rate of 4.65%. This research aims to determine the viability of increasing the annual growth rate of Mexican avocado exports to the Canadian market. To carry out the work, the avocado market between Mexico and Canada was represented in an econometric model and, with the results, a partial equilibrium analysis was carried out, simulating a 50% annual increase in exports. The results show that an increase in the amount of Mexican avocado exported to the Canadian market that results in an average annual growth rate of 50% is viable in terms of income. The simulation shows that the Benefit/Cost Ratio (B/C R) in avocado production for the states of Jalisco, Michoacan and the State of Mexico, in the hypothetical scenario, would be 1.4831, 1.4257 and 1.5322 respectively.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market
AU  - Daniel Hernandez Soto
AU  - Maria del Carmen Cornejo Serrano
AU  - Patricia Galvan Morales
Y1  - 2022/03/23
PY  - 2022
N1  - https://doi.org/10.11648/j.ijaas.20220802.15
DO  - 10.11648/j.ijaas.20220802.15
T2  - International Journal of Applied Agricultural Sciences
JF  - International Journal of Applied Agricultural Sciences
JO  - International Journal of Applied Agricultural Sciences
SP  - 92
EP  - 103
PB  - Science Publishing Group
SN  - 2469-7885
UR  - https://doi.org/10.11648/j.ijaas.20220802.15
AB  - Mexico is the main exporter of avocado in the world, while Canada is the seventh importer. To meet its domestic demand, Canada imports about 93.73% of avocados from Mexico. It is worth mentioning that, between 2003 and 2018, the average annual growth rate of Mexican avocado imports in Canada was 14.72%; while, from 2019 to 2021, this same rate averaged -4.65, that is, in this period Mexican avocado imports in Canada fell at an average annual rate of 4.65%. This research aims to determine the viability of increasing the annual growth rate of Mexican avocado exports to the Canadian market. To carry out the work, the avocado market between Mexico and Canada was represented in an econometric model and, with the results, a partial equilibrium analysis was carried out, simulating a 50% annual increase in exports. The results show that an increase in the amount of Mexican avocado exported to the Canadian market that results in an average annual growth rate of 50% is viable in terms of income. The simulation shows that the Benefit/Cost Ratio (B/C R) in avocado production for the states of Jalisco, Michoacan and the State of Mexico, in the hypothetical scenario, would be 1.4831, 1.4257 and 1.5322 respectively.
VL  - 8
IS  - 2
ER  -

Copy | Download

Author Information

Daniel Hernandez Soto

Management and Economic Department, Celaya Institute of Technology, Celaya, Mexico
Maria del Carmen Cornejo Serrano

Management and Economic Department, Celaya Institute of Technology, Celaya, Mexico
Patricia Galvan Morales

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

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Daniel Hernandez Soto, Maria del Carmen Cornejo Serrano, Patricia Galvan Morales. (2022). Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market. International Journal of Applied Agricultural Sciences, 8(2), 92-103. https://doi.org/10.11648/j.ijaas.20220802.15

Copy | Download

ACS Style

Daniel Hernandez Soto; Maria del Carmen Cornejo Serrano; Patricia Galvan Morales. Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market. Int. J. Appl. Agric. Sci. 2022, 8(2), 92-103. doi: 10.11648/j.ijaas.20220802.15

Copy | Download

AMA Style

Daniel Hernandez Soto, Maria del Carmen Cornejo Serrano, Patricia Galvan Morales. Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market. Int J Appl Agric Sci. 2022;8(2):92-103. doi: 10.11648/j.ijaas.20220802.15

Copy | Download

@article{10.11648/j.ijaas.20220802.15,
  author = {Daniel Hernandez Soto and Maria del Carmen Cornejo Serrano and Patricia Galvan Morales},
  title = {Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market},
  journal = {International Journal of Applied Agricultural Sciences},
  volume = {8},
  number = {2},
  pages = {92-103},
  doi = {10.11648/j.ijaas.20220802.15},
  url = {https://doi.org/10.11648/j.ijaas.20220802.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijaas.20220802.15},
  abstract = {Mexico is the main exporter of avocado in the world, while Canada is the seventh importer. To meet its domestic demand, Canada imports about 93.73% of avocados from Mexico. It is worth mentioning that, between 2003 and 2018, the average annual growth rate of Mexican avocado imports in Canada was 14.72%; while, from 2019 to 2021, this same rate averaged -4.65, that is, in this period Mexican avocado imports in Canada fell at an average annual rate of 4.65%. This research aims to determine the viability of increasing the annual growth rate of Mexican avocado exports to the Canadian market. To carry out the work, the avocado market between Mexico and Canada was represented in an econometric model and, with the results, a partial equilibrium analysis was carried out, simulating a 50% annual increase in exports. The results show that an increase in the amount of Mexican avocado exported to the Canadian market that results in an average annual growth rate of 50% is viable in terms of income. The simulation shows that the Benefit/Cost Ratio (B/C R) in avocado production for the states of Jalisco, Michoacan and the State of Mexico, in the hypothetical scenario, would be 1.4831, 1.4257 and 1.5322 respectively.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Profitability of Mexican Avocado Production in the Face of an Increase in Exports to the Canadian Market
AU  - Daniel Hernandez Soto
AU  - Maria del Carmen Cornejo Serrano
AU  - Patricia Galvan Morales
Y1  - 2022/03/23
PY  - 2022
N1  - https://doi.org/10.11648/j.ijaas.20220802.15
DO  - 10.11648/j.ijaas.20220802.15
T2  - International Journal of Applied Agricultural Sciences
JF  - International Journal of Applied Agricultural Sciences
JO  - International Journal of Applied Agricultural Sciences
SP  - 92
EP  - 103
PB  - Science Publishing Group
SN  - 2469-7885
UR  - https://doi.org/10.11648/j.ijaas.20220802.15
AB  - Mexico is the main exporter of avocado in the world, while Canada is the seventh importer. To meet its domestic demand, Canada imports about 93.73% of avocados from Mexico. It is worth mentioning that, between 2003 and 2018, the average annual growth rate of Mexican avocado imports in Canada was 14.72%; while, from 2019 to 2021, this same rate averaged -4.65, that is, in this period Mexican avocado imports in Canada fell at an average annual rate of 4.65%. This research aims to determine the viability of increasing the annual growth rate of Mexican avocado exports to the Canadian market. To carry out the work, the avocado market between Mexico and Canada was represented in an econometric model and, with the results, a partial equilibrium analysis was carried out, simulating a 50% annual increase in exports. The results show that an increase in the amount of Mexican avocado exported to the Canadian market that results in an average annual growth rate of 50% is viable in terms of income. The simulation shows that the Benefit/Cost Ratio (B/C R) in avocado production for the states of Jalisco, Michoacan and the State of Mexico, in the hypothetical scenario, would be 1.4831, 1.4257 and 1.5322 respectively.
VL  - 8
IS  - 2
ER  -

Copy | Download