Equilibrium Quantity and Timing of Mexican Vegetable Exports

Mexico has recently expanded its exports of tomatoes, peppers, and cucumbers to the United States. In order to evaluate possibilities for further expansion, a linear programming production model for specific regions in Mexico was constructed and tested. Various equilibrium situations were analyzed to appraise possible future trends. Special features of the model were the inclusion of risk, demand functions for all crops, and allowance for both competitive and monopolistic supply structures. It was concluded that rising wage rates and tighter supply controls would halt Mexico's expansion of export winter vegetables.