Evaluation of producer inflation, subsidies and profitability of vegetables and grains in Sinaloa, 2018-2019

Abstract

Objective: Evaluate producer inflation, equity in procampo support and profitability of eight agricultural products from Sinaloa, 2018-2019 cycle.

Method: This document has three approaches; In the first, estimated the impact of inflation on the value of agricultural production, using the agricultural producer price index (INPP) base 2019. Second, using the Lorenz curves, equity is calculated or in the allocation of procampo - proagro. Third, calculated internal rate of return (IRR) for the eight products and compared with the 28-day yield of the treasury certificates (CETES).

Results: The main crops in the state of Sinaloa are: cereals (corn, wheat), and vegetables (tomato, chili peppers). The current values ??generated in Sinaloa agriculture show growth. It is observed that there is an inflation gap that has been decreasing in the period 2000-2019. This implies that the transfer of prices from the producer to the consumer is less and less. It is noted that the profitability of the selected products is varied, vegetables with high rates and products such as corn and beans with low returns, even below the 28-day cetes.

Limitations: this study does not specify the size of the productive unit and only the data is generalized. It does not address marketing channels and their destinations.

Findings and conclusions: It is noted that there is a decrease in price transfers from the producer to the consumer, returns are also calculated and compared between crops and cetes. It is concluded that in the 2018-2019 period, corn and beans register lower profitability than if they were invested in CETES.

Keywords: inflation, profitability, prices, performance.