Soy (Glycine max L.) production and importation determinants in Mexico and actions aimed to increase its domestic coverage

Abstract

Objective: To analyze soy (Glycine max L.) production and importation determinants in Mexico, during the 1990-2000 period. Design/Methodology/Approach: Using lineal models, two econometric models were developed, in order to evaluate the relation between the soy production, harvested area, and soy production vs. importation variables. Results: We confirmed that soy production in Mexico is related to the increase of the harvested area, which promotes an increase in the domestic market and a reorganization of the soy harvested areas. The second model verified that the importations are the result of the limited domestic production. We propose a set of actions to increase domestic soy production. Study Limitations/Implications: The models must consider new variables to broaden the determinants and to improve the public policy actions proposed. Findings/Conclusions: The low domestic coverage rate and the high dependency on imports requires the implementation of policy actions to improve the domestic production capacity. A specific set of actions is proposed.