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Evaluation of comparative advantages in the profitability and competitiveness of the small-scale dairy system of Tulancingo Valley, Mexico

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Abstract

This article combines a Policy Analysis Matrix with a sensitivity and poverty line analysis with the objective of evaluating the economic contribution of comparative advantages to the private profitability and competitiveness of small-scale dairy systems. For 1 year, socioeconomic data were collected from 82 farms selected from four strata via statistical sampling. Two scenarios were established to determine the quantitative contribution of comparative advantages: (1) a simulated scenario, which accounted for the cost of purchasing the total food and the opportunity cost of the family labour force (FLF), and (2) an actual production scenario, which accounted for the cost of producing food and eliminating the payment of the FLF and included other income. The E3 and E4 producers were the most profitable and competitive in the simulated scenario and actual production scenario. Of the four scales evaluated, the E2 and E1 producers were the most efficient in taking advantage of the economic contribution provided by the comparative advantages in their own production of food and employment of the FLF, in addition to accounting for other income, a condition that increased their profitability by 171 and 144% and competitiveness by 346 and 273%, respectively. The poverty results indicated that only E3 and E4 producers were non-vulnerable in the simulated scenario and actual production scenario. The purchase of food was the comparative advantage with the greatest sensitivity to cost increases in the two scenarios analysed, which exacerbated the effect on the E1 and E2 producers.

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Acknowledgements

The authors are very grateful to the 82 small-scale dairy production systems of the Tulancingo Valley, Mexico, for sharing their experiences and making this study possible. This study was funded by grant PROMEP.

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Authors and Affiliations

  1. Escuela Superior de Zimapán-Universidad Autónoma del Estado de Hidalgo (UAEH) [Zimapán Graduate School-Autonomous University of the State of Hidalgo], Avenida Jorge Preisser Terán Col. Nueva Reforma, CP 42330, Zimapán de Zavala, Hidalgo, Mexico

    Rodolfo Rogelio Posadas-Domínguez

  2. Instituto de Ciencias Agropecuarias-UAEH [Institute of Agricultural Sciences], Universidad Km. 1, Ex Hacienda de Aquetzalpa, CP 43600, Tulancingo, Hidalgo, Mexico

    Oscar Enrique Del Razo-Rodríguez, Isaac Almaraz-Buendía, Armando Pelaez-Acero, Verónica Espinosa-Muñoz & Jesús Armando Salinas-Martínez

  3. Centro Universitario UAEM Temascaltepec-Universidad Autónoma del Estado de México [Temascaltepec University Center-Autonomous University of the State of Mexico], Km. 67.5, carretera Toluca-Tejupilco. Colonia Barrio de Santiago sn, C. P. 51300, Temascaltepec, Estado de México, Mexico

    Samuel Rebollar-Rebollar

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  1. Rodolfo Rogelio Posadas-Domínguez
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  2. Oscar Enrique Del Razo-Rodríguez
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  3. Isaac Almaraz-Buendía
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  6. Samuel Rebollar-Rebollar
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  7. Jesús Armando Salinas-Martínez
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Correspondence to Jesús Armando Salinas-Martínez.

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Posadas-Domínguez, R.R., Del Razo-Rodríguez, O.E., Almaraz-Buendía, I. et al. Evaluation of comparative advantages in the profitability and competitiveness of the small-scale dairy system of Tulancingo Valley, Mexico. Trop Anim Health Prod 50, 947–956 (2018). https://doi.org/10.1007/s11250-018-1516-8

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