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The impact of Mexican competition on the U.S. strawberry industry

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  • Suh, Dong Hee
  • Guan, Zhengfei
  • Khachatryan, Hayk

Abstract

This paper models the U.S. strawberry market and examines how increasing imports from Mexico affect the prices and shipment values of California and Florida winter strawberries. The Synthetic Inverse Demand System is used to quantify the impact of Mexican shipments on the prices of strawberries. The estimation results indicate that market prices are responsive to supply from each of the three sources, suggesting an integrated, competitive national market. The simulation results suggest that rapidly growing Mexican shipments will cause large losses to the U.S. strawberry industry, posing challenges to the sustainability and survival of the industry, particularly that of the Florida industry. Policy implications and recommendations for the industry are discussed.

Suggested Citation

  • Suh, Dong Hee & Guan, Zhengfei & Khachatryan, Hayk, 2017. "The impact of Mexican competition on the U.S. strawberry industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4), April.
    • Handle: RePEc:ags:ifaamr:264241
    DOI: 10.22004/ag.econ.264241
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    Cited by:

    1. Ariel Soto‐Caro & Feng Wu & Tian Xia & Zhengfei Guan, 2023. "Demand analysis with structural changes: Model and application to the US blueberry market," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1100-1116, October.
    2. Li, Sheng & Wu, Feng & Guan, Zhengfei & Luo, Tianyuan, 2021. "How trade affects the US produce industry: the case of fresh tomatoes," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(1), September.
    3. Kuan-Ming Huang & Zhengfei Guan & AbdelMalek Hammami, 2022. "The U.S. Fresh Fruit and Vegetable Industry: An Overview of Production and Trade," Agriculture, MDPI, vol. 12(10), pages 1-20, October.
    4. Feng Wu & Berdikul Qushim & Zhengfei Guan & Nathan S. Boyd & Gary E. Vallad & Andrew MacRae & Tyler Jacoby, 2019. "Weather Uncertainty and Efficacy of Fumigation in Tomato Production," Sustainability, MDPI, vol. 12(1), pages 1-12, December.
    5. Li, Yi & Huang, Kuan-Ming & Guan, Zhengfei, 2024. "Mechanization and Farm Profit: Model and Application to Specialty Crops," 2024 Annual Meeting, July 28-30, New Orleans, LA 344053, Agricultural and Applied Economics Association.

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