Competitiveness of fresh Mexican beef in the U.S. market

Recently, Mexican farming has shifted from a process of extensive ranching and exportation of live cattle to highly technical processes for exporting a higher quality of fresh and frozen meat. This production dynamic is reflected in the greater stake of livestock in the agri-food industry and the gr...

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Bibliographic Details
Main Authors: Ríos Flores, Jesús Armando, Castillo Arce, Miriam Liliana
Format: Online
Language:eng
spa
Published: Universidad Autónoma de Baja California 2015
Online Access:https://ref.uabc.mx/ojs/index.php/ref/article/view/524
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Summary:Recently, Mexican farming has shifted from a process of extensive ranching and exportation of live cattle to highly technical processes for exporting a higher quality of fresh and frozen meat. This production dynamic is reflected in the greater stake of livestock in the agri-food industry and the gross domestic product (GDP) of Mexico and its share of the United States (U.S.) market. This paper quantifies the effect of production dynamics in the domestic market and the competitiveness of fresh beef in the U.S. using the constant market share (CMS) and relative export advantage (REA) techniques. We identified a stable growth path without presenting a comparative advantage. Similarly, this dynamic has generated a substantial increase in the U.S. market share, which is generated by a growth in the target market and increased competition within the meat sector in Mexico.