Factors explaining price decrease of chicken meat in Mexico

Resumen

Objective: to determine the main factors that explain the decrease in the real price of chicken meat for the producers in Mexico during the period 1994-2021.

Design/ Methodology/ Approach: an inverse supply function was used to determine the percentage change in the price of chicken meat when the factors that determine this variable vary.

Results: it was proved that technological change was the main variable explaining the decrease in the price of this white meat. Other factors, such as decrease in the price of competitive products and the inputs used as feed for broilers, also favored price drop.

Study limitations/ Implications: a limitation of the study is that only Mexico’s domestic data were used.

Findings/ Conclusions: a drop in the price of chicken meat to the producer in Mexico is explained by the behavior of the factors that determine chicken meat supply in the period analyzed. Such factors were technological development, as well as the decrease in the prices of the inputs used in production, and other competitive goods, which explain price drop to the producer.