Analysis of the demand for live beef cattle in slaughter centers in Mexico, 2000-2018

Abstract

The analysis of the value chain in beef cattle of Mexico has focused mainly on production and final consumer; however, slaughter centers represent the main link between producers and consumers. The objective was to analyze the demand for live beef cattle in the slaughter centers of Mexico, 2000-2018. The sample considered 50 slaughterhouses, in 26 of 32 states and the demand models were estimated using the ordinary least squares method. It was possible to estimate the four best demand models by product; the price explained 43.4 % of the variability in the quantity of beef in the slaughter centers; 60.4 % for cull cows, 37.7 % steers, 33.5 % cull bulls and 28.8 % heifers. All products behaved inelastic in price (-0.17), but the demand for steers had the lowest elasticity (-0.06). The beef market presented a low average density of connections between the producers and slaughter centers analyzed (25.2 ± 43.4 %), which indicates its inefficiency. The state of Jalisco represented the main slaughter center in steers and cull cows, while Aguascalientes in heifers and cull bulls.