Analysis of the beef supply in Veracruz, Jalisco and Chiapas states, Mexico, 2000-2019

Abstract

Objective: to determine the effect of the variables that impact the supply of beef in Veracruz, Jalisco and Chiapas states, Mexico, from 2000 to 2019. Methodological design/approach: a multiple linear regression model was used; where the supply was the dependent variable and the price of beef, corn price and annual rainfall were the explanatory variables. Results: the dynamics of the beef production in Veracruz, Jalisco and Chiapas were directly and inelastically explained by its price with a value of 0.89, 0.13 and 0.49; inversely and inelastically by the price of corn (0.05, 0.005 and 0.05) and directly and inelastically by the state annual precipitation (0.16, 0.01 and 0.21). Study limitations/implications: it is suggested to test the statistical and economic significance with the Cobb-Douglas supply models to contrast their elasticities. Findings/conclusions: the variable that explained the dynamics of bovine production in these Mexican states was the price of the product, while the price of corn was the one with the least impact.