DETERMINATION OF THE ECONOMIC IMPACT OF IMPORTS OF POWDERED MILK ON THE MEXICAN DAIRY SECTOR: INPUT-OUTPUT MATRIX ANALYSIS

Abstract

In order to estimate the economic impact, the 2013 national Input-Output Matrix was employed to measure the economic impacts through the use of the product, employment and sectoral income multipliers. The study found that the increase in demand for powdered milk by the dairy industry has a strong impact on dairy production units and its associated value chain, forcing many to close their businesses. The results support the feasibility of improving the current difficult situation that milk producers are facing by formulating a broader public policy that integrates farmers, ranchers, industrialists, services and government in a chain of greater shared value, so that coordinated and complementary action contributes to expressing the full potential of the companies that make up the dairy production chain.