Objetivo:

Measure the effects of the price support policy on the production, consumption and trade balance of beans in the Central Valleys region of Oaxaca.

Methodology:

An endogenous price programming model was used that maximizes economic surpluses in the bean market in the Central Valleys, using average information for the period 2017-2019.

Results:

With the price support policy, production would increase by 13.0 % and consumption would decrease by 3.5 %, compared to the levels observed in the base year. These changes would reduce the trade balance from 6.3 to 5.5 thousand tons. The above changes would determine an increase of 27.6 % in the producer surplus and a contraction in the consumer surplus of 6.9 % with respect to the level observed in the base year.

Limitations:

The elasticities used correspond to the national bean market.

Conclusions:

The price support policy has a positive effect on the production and producer welfare and a negative effect on the consumption and consumer welfare. The increase in bean production would not be enough to eliminate the trade deficit; therefore, the implementation of other policies to increase legume production is recommended.

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