Business models for sheep production in the Northeast and center of the State of Mexico

Abstract

Sheep farming is important because of the growing demand and the benefits it generates. However, to boost its productivity, it is required to know its business characteristics. The objective of the research was to explain the environment in which production takes place and to define the main business models, to specify their development prospects. A semi-structured interview was applied to 32 companies. To analyze the profile of the producer and the production unit, descriptive statistics was used and to typify the companies depending on their business model, a cluster analysis was used. It was found that, due to the proximity to large urban centers, production is located in a peri-urban area with high demand for resources such as land and water, participates in a short-circuit commercial chain and producers carry out the activity in a complementary way. Under this context, three business models were identified: i) the traditional, which offers animals without differentiated attributes, without making productive and commercial improvements, which develops the activity in an inertial way and without prospects for improvement; ii) the intermediate, which shows greater willingness to apply technical, commercial and managerial knowledge, due to the schooling of its producers; and iii) the specialized, where a better productive management is carried out, offering high-value products. It is concluded that, to boost productivity, it is necessary to take into account the business model and the environment, because only once the needs of the market are met, producers will improve their competitiveness.