Profitability and comprehensive competitiveness of grain maize in a municipality in economic transition

Resumen

Objective: to evaluate the private, social and environmental profitability and competitiveness of the production systems of native (Creole) and improved (modified) grain maize in rainfed and irrigated regimes in San José de Gracia, Aguascalientes.

Design/ Methodology/ Approach: for data collection, participant observation techniques, surveys and official sources from Mexico’s National Foreign Trade Information System (SNICE), and the Tax Revenue Administration Service (SAT) were applied. A specific questionnaire was designed for grain maize producers in San José de Gracia to record inputs and production costs. Environmental (reduction of agrochemicals) and private assessments were performed with the Policy Analysis Matrix (MAP) methodology. The social analysis was based on the SAGARPA–FAO methodology for intermediate inputs, considering variables such as tariffs, taxes, inputs, subsidies, insurance-freight costs, transport costs, fuel prices and exchange rate.

Results: a 64.9% of grain maize production was profitable, competitive, and efficient. The presence of agricultural policies and market distortions improved profitability by 37.43% and competitiveness by 12.08% of grain maize production. On the other hand, these indicators were reduced by 20% and 5.3% when implementing environmental strategies.

Findings/ Conclusions: at market and economic prices, the improved grain under irrigation presented the highest profitability and the Irrigated Creole system, the greatest competitiveness. In the environmental analysis, the Creole grain maize production system under irrigation showed competitiveness and profitability. However, these indicators were below the values assessed at private costs.