Profitability and distribution analysis of table grapes of Hermosillo, Sonora in the United States and the European Union

Abstract

The aim of this research was to determine the liability to export table grapes produced in Hermosillo, Sonora, Mexico into the European Union. The sampling method was conducted, which consisted of direct interviews with farmers, agricultural technicians and the director of the Local Agricultural Producers Association of Table Grape (AALPUM) in the region of Hermosillo in 2013. This region contributes with 57% of the domestic production (SIAP-SAGARPA, 2012), but most of it (70%) goes to the American market and, the rest to other countries as well as the domestic market (Growing Produce Magazine, 2013). In order to determine the viability to export into the European Union, an economic model was constructed to analyse the profitability of the crop on different technologies, also, the transportation and marketing costs were investigated. After, a scenario was presented as if the producers sent their grapes into the European Union, referring to three routes, as well as all costs involved including the opportunity cost of not selling the fruit to the American market and considering the market window in question, concluding that, the exportation of the fruit to the European Union is indeed feasible, as long as the fruit is harvested in late April and sent through the thirteen-days route to arrive at destination port, to seize the little market window and find good prices.