The structural changes in the Mexican coffee sector: Effects on the transaction costs

Benigno Rodriguez Padron, Kees Burger

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Abstract

This paper analyses the structural changes which have been present since the economic clauses of the International Coffee Agreements have no longer been in effect. It studies the elements that modified the coffee policy over time. It also investigates the main characteristics of the entire coffee sector during and after government control of the sector. Specifically, it considers the prices, government expenditure in the coffee industry, partners’ participation and their organisation, and the performance of the coffee industry. We use data collected from several bureaus, institutions, libraries, and field surveys done with the main parties involved in the Mexican coffee sector. Data coming from the national coffee census updated in 2008 was used to figure out some characteristics of the coffee supply chain. The overall results indicate that the main causes for the structural changes have been the adjustment in the Mexican economic policy and the alignment to international agreements in coffee. We found that the coffee margins were higher during the time of the quota system than in the relatively free coffee market currently in place.

Original languageEnglish
Pages (from-to)30-69
JournalCustos e Agronegocio
Volume11
Issue number4
Publication statusPublished - 2015

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Keywords

  • Institutional changes
  • Market structure
  • Organisation

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