Evaluation of the Effects of an Import Quota on the Regional and National Chicken Market in Mexico

Abstract

A spatial equilibrium model with non-linear programming was used to evaluate the effects of the approval of an import quota of 55 thousand tons of chicken meat (leg and thigh) on the Mexican poultry market in 2019. To carry out the study, the country was divided into two import points, eight producing regions and eight consuming regions. It was found that the quota decreases production as well as the price paid by the consumer and producer in seven of the eight regions of Mexico, while consumption and imports increased throughout the country, with this scenario the national Net Social Value increases; however, only the end consumer benefits. The model indicates that imports can be reduced by one percentage point, if the country takes advantage of its comparative advantages, the geographic location of the productive regions and import locations to reduce transportation costs.