The impact of Mexican competition on the U.S. strawberry industry

This paper models the U.S. strawberry market and examines how increasing imports from Mexico affect the prices and shipment values of California and Florida winter strawberries. The Synthetic Inverse Demand System is used to quantify the impact of Mexican shipments on the prices of strawberries. The estimation results indicate that market prices are responsive to supply from each of the three sources, suggesting an integrated, competitive national market. The simulation results suggest that rapidly growing Mexican shipments will cause large losses to the U.S. strawberry industry, posing challenges to the sustainability and survival of the industry, particularly that of the Florida industry. Policy implications and recommendations for the industry are discussed.


Issue Date:
Apr 14 2017
Publication Type:
Journal Article
ISSN:
1559-2448
Language:
English
Published in:
International Food and Agribusiness Management Review, Volume 20, Issue 4
Page range:
591-604
JEL Codes:
Q11; Q13; Q18




 Record created 2017-10-17, last modified 2017-10-17

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