Asymmetries of the yellow and white corn markets in Mexico
DOI:
https://doi.org/10.29312/remexca.v17i3.4087Keywords:
agricultural policy, relative prices, self-sufficiency and dependenceAbstract
The study focuses on analyzing the yellow and white corn markets in Mexico during the period 2010-2023 to understand the current situation of both grains and to generate a background that allows the development of studies differentiated by corn variety rather than treated as a homogeneous crop. Distinguishing between corn varieties allows us to understand the productive, price and trade dynamics, where white corn is intended for food diets and yellow corn for livestock consumption. This study aimed to estimate and identify asymmetries in competitiveness, trade balance and prices, using indices of self-sufficiency and import dependence, as well as the relative prices proposed by FAO and the World Bank. The results showed significant differences; on the one hand, yellow corn is dependent on imports, has limited domestic production and has relative prices that, although competitive as of 2020, show a loss of profitability; on the other hand, white corn has productive self-sufficiency and a strengthened national production; however, it is not present in the international market (exports and imports) and relative prices, while showing a growing trend in competitiveness, are also losing profitability. In conclusion, it is recommended that the State intervene through differentiated agricultural policies that include contract farming for yellow corn and technological improvements and fertilizer subsidies for white corn, in order to improve profitability and thereby promote national production.
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