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Price Relationships Among North American Fresh Tomato Markets: A Comparison Between Mexican And U.S. Markets

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  • Padilla-Bernal, Luz E.
  • Thilmany, Dawn D.

Abstract

Tomato trade between the U.S. and Mexican has grown significantly during the past decade, and market structure suggests increased market integration. This study examines fresh tomato price relationships between two major North American shipping points (Sinaloa, and Florida) and several major terminal markets in the U.S. and Mexico to infer whether business strategies vary by supply region or the geography of consumer markets. The results show some evidence of inefficient pricing behavior among some markets, and suggest that Mexican shipping point prices are less integrated with Mexico's own terminal markets than the closest U.S. market, Los Angeles. Moreover, perfectly competitive price behavior is less likely in a terminal market (Chicago) where Sinaloa and Florida compete during winter months. These results are the basis of discussion on the role of strategic behavior and trade policy influence in these markets.

Suggested Citation

  • Padilla-Bernal, Luz E. & Thilmany, Dawn D., 2003. "Price Relationships Among North American Fresh Tomato Markets: A Comparison Between Mexican And U.S. Markets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(3), pages 1-19.
  • Handle: RePEc:ags:ifaamr:34332
    DOI: 10.22004/ag.econ.34332
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    File URL: https://ageconsearch.umn.edu/record/34332/files/0503pa01.pdf
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    References listed on IDEAS

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    Cited by:

    1. Jaramillo-Villanueva, Jose Luis & Sarker, Rakhal, 2009. "Exchange Rate Sensitivity of Fresh Tomatoes Imports from Mexico to the United States," 2009 Conference, August 16-22, 2009, Beijing, China 51459, International Association of Agricultural Economists.
    2. Perez, Maria P. & Ribera, Luis A. & Palma, Marco A., 2017. "Effects of trade and agricultural policies on the structure of the U.S. tomato industry," Food Policy, Elsevier, vol. 69(C), pages 123-134.
    3. Padilla-Bernal, Luz E. & Thilmany, Dawn D. & Loureiro, Maria L., 2003. "An Empirical Analysis of Market Integration and Efficiency for U.S. Fresh Tomato Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-16, December.

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