PRICE RELATIONSHIPS AMONG NORTH AMERICAN FRESH TOMATO MARKETS: A COMPARISON BETWEEN MEXICAN AND U.S. MARKETS

Tomato trade between the U.S. and Mexican has grown significantly during the past decade, and market structure suggests increased market integration. This study examines fresh tomato price relationships between two major North American shipping points (Sinaloa, and Florida) and several major terminal markets in the U.S. and Mexico to infer whether business strategies vary by supply region or the geography of consumer markets. The results show some evidence of inefficient pricing behavior among some markets, and suggest that Mexican shipping point prices are less integrated with Mexico’s own terminal markets than the closest U.S. market, Los Angeles. Moreover, perfectly competitive price behavior is less likely in a terminal market (Chicago) where Sinaloa and Florida compete during winter months. These results are the basis of discussion on the role of strategic behavior and trade policy influence in these markets.