Response of economic indicators of guava (Psidium guajava L.) production to public policies: Mexico

Resumen

Objective: To estimate the profitability, competitiveness, and efficiency of guava production in Mexico in order to determine whether agricultural public policies have strengthened or undermined its economic performance. Design/methodology/approach: The Policy Analysis Matrix (PAM) was applied, complemented by the Relative Economic Competitiveness Index. Private prices and production costs were compiled from Mexico’s guava-producing states. For each production system, data were collected on cultivated area, yield, output, production system type, input units, wages, and farm-gate and marketing prices. Results: At private prices, 98.45% of guava production was profitable and 94.75% was competitive; under social prices, these proportions declined by 4.35 and 2.85 percentage points, respectively. Additionally, 92.88% of production exhibited comparative advantages, concentrated in 6.25% of the guava-producing states. In 93.75% of state-level production systems, agricultural policy was pivotal for sustaining guava production; conversely, in Michoacán and Aguascalientes, policy was not a determining factor. Production displayed favorable relative competitiveness for investors, but not from a social perspective. Findings/conclusions: Guava production in Mexico showed high profitability and competitiveness under both private and social prices. Comparative advantages were identified only in the production systems of Aguascalientes and Michoacán. Overall, agricultural public policies enhanced profitability, competitiveness, and efficiency, particularly in states characterized by rainfed production systems