Beef market in Mexico, considering external factors

Abstract

Mexico lacks sufficient beef supply to satisfy the consumption
of this food, and significant volumes are imported. This
meat industry has suffered an important market loss with
substitutes. For the period of 1980-1993 to 1994-2014, the
production of this meat increased 35.6 % in average; the
domestic demand, 47.2 %; and the imports, 496.1 %. An
important input for fattening cattle is balanced meals; for this
purpose, in the same periods, the imports of yellow maize and
sorghum increased 151.9 % y 11.6 %. Therefore, the effect of
maize and sorghum imports to Mexico were analyzed, from
1980-2014, as part of the diet in the fattening process, and
of beef on the market of this food through an econometric
model of simultaneous equations, estimated by least squares
in two stages with the SAS SYSLIN procedure. In the period
of 1994-2014, the increase in the real price of annual average
beef imports of 0.8 % is transmitted through the wholesale
price, producer price and consumer price, which increased
the amount offered in 0.04 % and decreased the amount
demanded in 0.05 % and the commercial balance in 0.81 %.