Open AccessAnalysis of Copra and Coconut Oil Markets in Mexico
Author(s) -
Edgar Ricardo Lagunes Fortiz,
Alma Alicia Gómez-Gómez,
Juan Antonio Leos-Rodríguez,
José Miguel Omaña-Silvestre,
Erika Lagunes-Fortiz
Publication year - 2021
Publication title -
agro productividad
Language(s) - English
Resource type - Journals
ISSN - 2594-0252
DOI - 10.32854/agrop.v14i4.1806
Subject(s) - copra , profit (economics) , coconut oil , revenue , business , production (economics) , agricultural science , agricultural economics , economics , finance , microeconomics , geography , environmental science , medicine , archaeology , pathology
Objective: To assess the economic impact of the implementation of differentproduction systems (real, traditional, intensive and organic) on the profits of copra-producing states and major coconut oil companies.Design/Methodology/Approach: A linear programming model was formulatedwhich considered the main costs and production revenues, and the transport costs ofthe copra and coconut oil market, in order to maximize the profit of copra producersand the oil industry simultaneously.Results: The states that were most suitable in the distribution of copra wereGuerrero and Tabasco, which proved to be the main suppliers of all the productionsystems evaluated; within production systems, the intensive system presented ahigher level of profit in the scenarios raised.Study Limitations/Implications: The model considered the sale of copra as thesole income of producers, leaving aside the marketing of other products and economic transfers, thus underestimating their total profit. Future research isrequired to help collect data on alternative sources of income for producers.Findings/Conclusions: Increasing copra production without taking into account theinstalled capacity in the industry results in the creation of a copra surplus in mostproducing states, which would result in a fall in the prices of this product, thereforereducing the profit of most states.