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Study on the Competitiveness of the Mexican Sugar Industry

Author

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  • Francisco Campos-Ortiz
  • Mariana Oviedo-Pacheco

Abstract

In this paper, we study various key structural features of sugarcane production and sugar mills in Mexico. Regarding the production of sugarcane: (a) we document a U-shaped relationship between the size of sugarcane cultivation plots and their yield, and show suggestive evidence that this relationship is driven by the more intensive use of inputs in smaller and larger plots relative to those of medium size; (b) we argue that there are factors that complicate the functioning of the land market; and (c) we present evidence refuting the conjecture that the mechanism used to determine payments for sugarcane affects negatively the quality of this crop. With respect to sugar mills, we find that those mills that are able to generate electricity more efficiently tend to observe higher returns in sugar production.

Suggested Citation

  • Francisco Campos-Ortiz & Mariana Oviedo-Pacheco, 2013. "Study on the Competitiveness of the Mexican Sugar Industry," Working Papers 2013-16, Banco de México.
  • Handle: RePEc:bdm:wpaper:2013-16
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    File URL: http://www.banxico.org.mx/publicaciones-y-discursos/publicaciones/documentos-de-investigacion/banxico/%7B8D769E82-BDFD-E7F7-C7A9-23B37D093D11%7D.pdf
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    References listed on IDEAS

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    1. Helfand, Steven M. & Levine, Edward S., 2004. "Farm size and the determinants of productive efficiency in the Brazilian Center-West," Agricultural Economics, Blackwell, vol. 31(2-3), pages 241-249, December.
    2. Thapa, Sridhar, 2007. "The relationship between farm size and productivity: empirical evidence from the Nepalese mid-hills," 106th Seminar, October 25-27, 2007, Montpellier, France 7940, European Association of Agricultural Economists.
    3. Carter, Michael R, 1984. "Identification of the Inverse Relationship between Farm Size and Productivity: An Empirical Analysis of Peasant Agricultural Production," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 131-145, March.
    4. Bhalla, Surjit S & Roy, Prannoy L, 1988. "Mis-specification in Farm Productivity Analysis: The Role of Land Quality," Oxford Economic Papers, Oxford University Press, vol. 40(1), pages 55-73, March.
    5. Heltberg, Rasmus, 1998. "Rural market imperfections and the farm size-- productivity relationship: Evidence from Pakistan," World Development, Elsevier, vol. 26(10), pages 1807-1826, October.
    6. Zhuo Chen & Wallace E. Huffman & Scott Rozelle, 2011. "Inverse Relationship Between Productivity And Farm Size: The Case Of China," Contemporary Economic Policy, Western Economic Association International, vol. 29(4), pages 580-592, October.
    7. Munir Ahmad & Sarfraz Khan Qureshi, 1999. "Recent Evidence on Farm Size and Land Productivity: Implications for Public Policy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 1135-1153.
    8. Cornia, Giovanni Andrea, 1985. "Farm size, land yields and the agricultural production function: An analysis for fifteen developing countries," World Development, Elsevier, vol. 13(4), pages 513-534, April.
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    More about this item

    Keywords

    Sugar; Sugar Industry; Competitiveness; Sugarcane; Plot Yield; Sugar Mill Efficiency;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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