Efectos De La Aplicación De Subsidios Al Mercado Porcino En México

The objective of this paper was to evaluate the subsidies application on the pork market in Mexico by region, in 2015 and 2016, through a nonlinear programming model. Eight consumption and eight production regions as well as two ports of entry were analyzed: Northwest, North, Northeast, Midwest, Central-East, South, East, Peninsula, Port of entry one, Port of entry two; the analysis was carried out in production, imports and consumption. Under optimal conditions, the model under estimated domestic production by 0,4%, overestimated regional and national imports and consumption by 2,5% and 0,4%, and acquired an optimal Net Social Value (NSV) of 216,563 million dollars. Subsidy to the pork supply would increase imports, consumption and production in 0, 03, 0,006 and 0,07%, NSV would increase 0,006%. Production and consumption prices would decrease due to the subsidy effect in every region. By region, producer and consumer optimal prices would increase due to subsidy effect. As a conclusion, a subsidy on pork supply would bring social benefits, production increase, and consumer’s protection. Politics could be helpful for production as long as the government’s intention is led to that purpose.