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The insertion of Mexico into the global value chain of berries

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  • González-Ramírez, María Guadalupe
  • Santoyo-Cortés, Vinicio Horacio
  • Arana-Coronado, José Jaime
  • Muñoz-Rodríguez, Manrrubio

Abstract

Trade liberalisation has promoted the spatial fragmentation of production processes and the development of Global Value Chains (GVCs). The global industry of fresh berries (strawberry, raspberry, blackberry, and blueberry) manages a highly perishable product, which requires high levels of coordination between agents. This study uses the GVC approach, emphasising governance forms and structures, to understand Mexico’s berry boom and its drivers. The study implements a grounded theory methodology to analyse data from interviews, agri-food databases, and a documentary review. We find that the governance of GVC of berries lies in globally trading companies, who determine and coordinate its operation. We observe that the greater the complexity in transactions between growers and traders, the higher levels of coordination are established through hierarchical and captive governance structures. Agricultural producers play a subordinate role, although the local conditions, as proximity to the United States market, climate, and labour availability, determine their specific functioning. The study shows the opportunities and threats of the successful insertion of a peripheral country into a GVC, as a supplier of a very perishable product, with highly seasonal production.

Suggested Citation

  • González-Ramírez, María Guadalupe & Santoyo-Cortés, Vinicio Horacio & Arana-Coronado, José Jaime & Muñoz-Rodríguez, Manrrubio, 2020. "The insertion of Mexico into the global value chain of berries," World Development Perspectives, Elsevier, vol. 20(C).
    • Handle: RePEc:eee:wodepe:v:20:y:2020:i:c:s2452292920300606
    DOI: 10.1016/j.wdp.2020.100240
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    1. González-Ramírez, María Guadalupe & Santoyo-Cortés, Vinicio Horacio & Arana-Coronado, José Jaime & Muñoz-Rodríguez, Manrrubio & Albis-Salas, Nadia, 2023. "Global traders and the integration of Chile and Mexico into the configuration of the global value chain of berries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(2), February.

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