Factors affecting the profitability of wheat production in the states of Guanajuato and Nuevo Leon, Mexico

Abstract

The objective of this research was the analysis of the main factors involved in the profitability of bread wheat in the states of Guanajuato and Nuevo León, Mexico. To obtain the information, semi-structured interviews were applied to key informants who indicated the context of the crop in their region. In order to estimate profitability, production performance and costs production were determined. The production cost information, for the two Mexican states, was obtained through the producer panels methodology in 2019. Producers were asked about the costs expended in land preparation, cultivation inputs, harvest and others such as water, electricity and financial rights. In addition, wheat yields and the price received per ton sold at the market. It was noticed that Nuevo León and Guanajuato have an agro-industrial infrastructure that demands Mexican wheat. In each state, the profitability of the crop depends on a number of factors such as the planting system and the production technology used; but in all the places studied, bread wheat had positive profitability. However, there are high production costs and a continuous deterioration of the real prices of the product. It is necessary to develop soft wheat varieties that adapt to rainfall conditions for agricultural regions where wheat cultivation is under those conditions. Although Mexico is self-sufficient in the production of flour, each year it is necessary to import an additional volume of bread-making wheat since Mexican industry is deficient facing the high demand for bread production.