Competitiveness analysis of exporting Mexican avocado to United States of America

Abstract

The United States of America is the main consumer of avocado, and to meet its demand it imports large quantities from Mexico. Between 2015 and 2020, Mexican avocado imports increased at an annual average of 4.56%. The present work aims to know the viability of increasing the annual growth rate of exports to the US market. To carry out the research, the international avocado market between Mexico and the United States of America was represented in an econometric model and, through a partial equilibrium analysis, a 30% annual increase in exports was simulated. According to the results, an increase in the exported quantity of Mexican avocado to the United States of America at an annual growth rate of 30% is viable. The simulated scenario shows that the Benefit/Cost Ratio (B/C R) for avocado producers in Michoacán, Jalisco and Estado de Mexico would be 1.6890, 1.8514 and 1.8124 respectively.