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Study on the Competitiveness of the Mexican Sugar Industry

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  • Campos-Ortiz Francisco
  • Oviedo-Pacheco Mariana

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

  • Campos-Ortiz Francisco & Oviedo-Pacheco Mariana, 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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    References listed on IDEAS

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    5. 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.
    6. 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.
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    Cited by:

    1. Ana-Lucia Mayén & Silvia Stringhini & Nicole D. Ford & Reynaldo Martorell & Aryeh D. Stein & Fred Paccaud & Pedro Marques-Vidal, 2016. "Socioeconomic predictors of dietary patterns among Guatemalan adults," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 61(9), pages 1069-1077, December.

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    More about this item

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • 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

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