Panorama of the production and commercialization of orange in Mexico

Abstract

Objective: to analyze the variables of production and marketing of orange in the Mexican market.

Design/methodology/approach: was calculated the participation of the Mexican market in the world orange market, the exchange rate of the production variables of this citrus in Mexico, the trade balance of the crop in question, producer-export marketing margin, national and per capita apparent consumption and the index of revealed comparative advantages (RCA).

Results: Mexico owns about 8% of the world's harvested area of ??orange and produces 6% of the total volume of this citrus. The variation rate of the sown and harvested area of ??this crop was negative; the production volume presented a positive rate of 19.13%, attributable to the increase in the average yield per hectare. The commercial balance of the orange in Mexico had a positive balance in most of the years analyzed; in 2018, the United States of America (USA) consumed 91.33% of exports and provided 100% of Mexican imports of said citrus. Apparent consumption per capita has been greater than 35 kg. The producer's marketing margin with respect to the export price was 24.57%, while, with respect to the final consumer price, in the domestic market, it was 26.92%. The RCA with respect to the USA has been positive from 2014 to 2018.

Limitations on study/implications: the databases of international organizations present data with delays of up to two years. There is no repository of marketing margins calculated monthly by the Servicio de Información Agroalimentaria y Pesquera (SIAP).

Findings/conclusions: the orange producers are not the main beneficiaries of the value of national and international trade in this fruit. The Mexican market has a competitive advantage in the international orange market, the RCA is positive with respect to the USA; however, the volume of Mexican exports is low compared to production.