Mexican onion: a competitiveness analysis in the American market, 2002-2013

Abstract

The onion (Allium cepa) is the second most produced vegetable worldwide. The United States is the world’s largest importer of onions, and Mexico, Canada and Peru are its major suppliers. This article evaluates the competitiveness of onions produced in Mexico compared to those of Canada and Peru by using the following indicators: the import penetration rate, the export similarity index, the export and import quotas, the export comparative advantage and the revealed comparative advantage. The results show that Mexico has an export comparative advantage in the American market; however, this advantage decreased and Peruvian exports increased due to an increase in its yellow onion production and because Canada’s competitiveness is lower. The information included in this article is useful for designing public policies in the agricultural sector, although in subsequent studies it is suggested to use qualitative variables in order to have a comprehensive vision.