Analysis and perspectives of the emerging sheep and mutton market in Yucatán State, Mexico

Abstract

This study is concerned with the analysis of the situation on the emerging sheep and mutton market in Yucatán State, Mexico and the potential it holds for small scale sheep producers. As literature on the Mexican sheep and mutton market is scarce, this study is based on extensive interviews and field research conducted in the Mexican states of Yucatán, Puebla and Mexico over three month in early 2005. Significant case studies could be derived from the research and form the basis for most conclusions of this study. The sheep and mutton market has gained importance over the last years and is steadily growing. Domestic supply is currently insufficient; thus, the supply gap is filled by imports from several developed countries. The increasing demand for mutton constitutes a great potential for small scale farmers to expand their business and improve their financial situation. However, so far, producers in Yucatán have not been successful in exploiting the growing market for sheep and mutton as other market participants dominate and control the profit distribution in the value chain. Barbacoyeros realise the highest profit followed by intermediaries whereas small scale producers are left with a small profit per sheep. To shift this balance, it is recommended that small scale farmers form a cooperative to increase their bargaining power towards intermediaries and customers. The establishment of a cooperative would enable small scale producers to supply the demand more efficiently and would ultimately improve their financial situation Key words: sheep and mutton market, Mexico, small scale sheep producers, case studies, potential for expansion, Barbacoyeros, intermediaries, cooperative