SUPPLY OF GRAIN MAIZE IN GUANAJUATO, MEXICO: 1980-2009

Abstract

In Mexico, poor crop rotation has affected the capacity of soil to produce; the use of maize genotypes with higher yield potential and more intensive production systems has increased the demand for inputs, which affects the economy of the producer. To determine the effect of changes in input prices and the main factors that explain the supply of maize grain in Guanajuato, in the present work an econometric model was estimated; comprised of two supply equations, three transmission prices and an identity for the period from 1980 to 2009. The results indicate that the supply of maize grain in the state responds inelastically to changes in the producer price of maize produced under irrigation and elastically if changes arise in the same price level but the offer temporary, with elasticities own-price 0.8531 and 1.0604, changes in input prices that more affect the state offer are the pesticide and labor price, with cross-price elasticities of -0.6154 and -0.5470, changes in the competitive product that more impact are those in the bean, with cross-price elasticities of -0.5489, if produced under irrigation and -1.0292 if produced in temporary. The effect of price transmission, indicate that the producer price of maize under irrigation and temporary state is directly influenced by the wholesale price at a rate of 0.79 and 0.80% for each 1% change in it, while the cost of transport and the international price of maize influence on the wholesale price in the state at levels of 0.21 and 0.13% for every unit percentage change in them.