Determinants of the Farmgate Price of Maradol Papaya: The Case of Tututepec, Oaxaca

Abstract

Objective: To analyze the factors influencing the low Farm Gate Price (FGP) faced by papaya maradol producers in Villa de Tututepec, Oaxaca, a mu-nicipality that accounts for 40.9% of the state’s production and 11.5% of the national production, yet whose FGP is 20.7% lower than the national aver-age, ranking 167th among the 229 papaya-producing municipalities distrib-uted across 19 states in Mexico.
Design/methodology/approach: A total of 155 commercialization units were georeferenced, and their effects on the FGP were analyzed using cartography in QGIS, distance measurement, and a bubble chart in Python that related FGP, production volume, infrastructure, and state-level compe-tition.
Results: Limited commercialization infrastructure and long distances to major markets reduce the FGP perceived by producers. Although greater infrastructure availability can improve sales conditions, its effect may be moderated by high local competition. Furthermore, a high production volume, without adequate logistical support, tends to saturate the market and exert additional downward pressure on prices.
Limitations on study/implications: The lack of specific data on trans-portation conditions limited the construction of a more robust econometric model and reduced the significance of the analyzed variables.
Findings/conclusions: Strengthening logistical infrastructure and improv-ing proximity to distribution channels could significantly increase the income of papaya maradol producers in Villa de Tututepec