Objective:

To analyze the components that determine the egg market, identifying the main determining variables of supply, demand, and price transmissions.

Methodology:

A model of simultaneous equations was formulated with information from the period 19752020. The estimation was carried out using two-stage least square method, with SYSLIN procedure of the SAS (Statistical Analysis System, v.9.4.) computer package. The main economic and technological variables that affect the functions of the model were accounted.

Results:

The econometric model that represents the egg market is composed of five functional relationships and one identity function. There is an inelastic supply (0.15) to changes in the producer price and an inelastic demand (-0.54) to the consumer price. The producer price for pork was a weak competitor for egg production (-0.25). The consumer price of pork is a strong complement (-1.16) and that of beef is a close substitute (1.12), both quantities demanded.

Limitations:

The period of analysis of the egg market in Mexico.

Conclusions:

The variables that determine the egg supply in Mexico are the real producer prices of egg, pork, balance feed, and technology or feed conversion. The egg demand in Mexico is determined primarily by the real consumer prices of eggs, pork, beef, and the real national disposable income per capita.

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