Open AccessThe impact of Mexican competition on the U.S. strawberry industry
Author(s) -
Dong Hee Suh,
Zhengfei Guan,
Hayk Khachatryan
Publication year - 2017
Publication title -
the international food and agribusiness management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.474
H-Index - 35
eISSN - 1559-2448
pISSN - 1096-7508
DOI - 10.22434/ifamr2016.0075
Subject(s) - competition (biology) , sustainability , economics , agricultural economics , business , estimation , agribusiness , industrial organization , agriculture , geography , ecology , management , archaeology , biology
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.