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

Dong Hee Suh, Zhengfei Guan, Hayk Khachatryan

Research output: Contribution to journalArticle

6 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)591-604
Number of pages14
JournalInternational Food and Agribusiness Management Review
Volume20
Issue number4
DOIs
Publication statusPublished - 2017 Jan 1

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Keywords

  • competitiveness
  • Mexican competition
  • NAFTA
  • Strawberry market
  • Sustainability
  • Synthetic inverse demand system

ASJC Scopus subject areas

  • Food Science
  • Business and International Management

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