Global Tomato Production: Price Sensitivity and Policy Impact in Mexico, Türkiye, and the United States

Tomato, a vital subtropical vegetable crop, is in demand globally but is produced in limited regions. Recently, its supply has become increasingly influenced by internal and external production factors. This study analyzed the impact of price fluctuations and evolving agricultural support schemes on...

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Main Authors: Ramu Govindasamy, Rahmiye Figen Ceylan, Burhan Özkan
Format: Article
Language:English
Published: MDPI AG 2025-01-01
Series:Horticulturae
Subjects:
Online Access:https://www.mdpi.com/2311-7524/11/1/84
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author Ramu Govindasamy
Rahmiye Figen Ceylan
Burhan Özkan
author_facet Ramu Govindasamy
Rahmiye Figen Ceylan
Burhan Özkan
author_sort Ramu Govindasamy
collection DOAJ
description Tomato, a vital subtropical vegetable crop, is in demand globally but is produced in limited regions. Recently, its supply has become increasingly influenced by internal and external production factors. This study analyzed the impact of price fluctuations and evolving agricultural support schemes on tomato production in three key producers: Mexico, Türkiye, and the United States, which play significant roles in the global market with specialized production and trade. Using time-series price response data from 1991 to 2022, the research examined market prices, government support policies, and international trade agreements. Long-term price effects were similar in Türkiye and the USA but negligible in Mexico. Short-term price differences were positive across all countries, with the strongest impact in the USA. Financial support programs increased supplies in alignment with time-based effects. Deviations from long-term equilibrium were corrected in all countries, with Türkiye showing the fastest recovery. The results suggest that decoupled supports positively influence supply and merit further promotion.
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spelling doaj-art-02b57cd8e1a14fcf8033941223e9978d2025-01-24T13:34:43ZengMDPI AGHorticulturae2311-75242025-01-011118410.3390/horticulturae11010084Global Tomato Production: Price Sensitivity and Policy Impact in Mexico, Türkiye, and the United StatesRamu Govindasamy0Rahmiye Figen Ceylan1Burhan Özkan2Department of Agricultural, Food and Resource Economics, Rutgers University, New Brunswick, NJ 08901, USADepartment of Agricultural Economics, Faculty of Agriculture, Akdeniz University, Dumlupinar Boulevard, 07058 Antalya, TurkeyDepartment of Agricultural Economics, Faculty of Agriculture, Akdeniz University, Dumlupinar Boulevard, 07058 Antalya, TurkeyTomato, a vital subtropical vegetable crop, is in demand globally but is produced in limited regions. Recently, its supply has become increasingly influenced by internal and external production factors. This study analyzed the impact of price fluctuations and evolving agricultural support schemes on tomato production in three key producers: Mexico, Türkiye, and the United States, which play significant roles in the global market with specialized production and trade. Using time-series price response data from 1991 to 2022, the research examined market prices, government support policies, and international trade agreements. Long-term price effects were similar in Türkiye and the USA but negligible in Mexico. Short-term price differences were positive across all countries, with the strongest impact in the USA. Financial support programs increased supplies in alignment with time-based effects. Deviations from long-term equilibrium were corrected in all countries, with Türkiye showing the fastest recovery. The results suggest that decoupled supports positively influence supply and merit further promotion.https://www.mdpi.com/2311-7524/11/1/84tomatosupplypricesupportsvector error correction
spellingShingle Ramu Govindasamy
Rahmiye Figen Ceylan
Burhan Özkan
Global Tomato Production: Price Sensitivity and Policy Impact in Mexico, Türkiye, and the United States
Horticulturae
tomato
supply
price
supports
vector error correction
title Global Tomato Production: Price Sensitivity and Policy Impact in Mexico, Türkiye, and the United States
title_full Global Tomato Production: Price Sensitivity and Policy Impact in Mexico, Türkiye, and the United States
title_fullStr Global Tomato Production: Price Sensitivity and Policy Impact in Mexico, Türkiye, and the United States
title_full_unstemmed Global Tomato Production: Price Sensitivity and Policy Impact in Mexico, Türkiye, and the United States
title_short Global Tomato Production: Price Sensitivity and Policy Impact in Mexico, Türkiye, and the United States
title_sort global tomato production price sensitivity and policy impact in mexico turkiye and the united states
topic tomato
supply
price
supports
vector error correction
url https://www.mdpi.com/2311-7524/11/1/84
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AT rahmiyefigenceylan globaltomatoproductionpricesensitivityandpolicyimpactinmexicoturkiyeandtheunitedstates
AT burhanozkan globaltomatoproductionpricesensitivityandpolicyimpactinmexicoturkiyeandtheunitedstates