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The insertion of Mexico into the global value chain of berries

María Guadalupe González-Ramírez, Vinicio Horacio Santoyo-Cortés, José Jaime Arana-Coronado and Manrrubio Muñoz-Rodríguez

World Development Perspectives, 2020, vol. 20, issue C

Abstract: Trade liberalisation has promoted the spatial fragmentation of production processes and the development of Global Value Chains (GVCs). The global industry of fresh berries (strawberry, raspberry, blackberry, and blueberry) manages a highly perishable product, which requires high levels of coordination between agents. This study uses the GVC approach, emphasising governance forms and structures, to understand Mexico’s berry boom and its drivers. The study implements a grounded theory methodology to analyse data from interviews, agri-food databases, and a documentary review. We find that the governance of GVC of berries lies in globally trading companies, who determine and coordinate its operation. We observe that the greater the complexity in transactions between growers and traders, the higher levels of coordination are established through hierarchical and captive governance structures. Agricultural producers play a subordinate role, although the local conditions, as proximity to the United States market, climate, and labour availability, determine their specific functioning. The study shows the opportunities and threats of the successful insertion of a peripheral country into a GVC, as a supplier of a very perishable product, with highly seasonal production.

Keywords: Global value chain; Value chain governance; Vertical coordination; Berry boom; Mexico (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wodepe:v:20:y:2020:i:c:s2452292920300606

DOI: 10.1016/j.wdp.2020.100240

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