Profitability and economic viability of the production of agave syrup

Abstract

Objective: To quantify the income and production costs of agave syrup and the factors that determine them to determine whether it is an alternative to improve the competitiveness and profitability of agave production. Design/methodology/approach: Through a cross-sectional mixed method, using semi-structured interviews and the technique of producer panels, three representative production units (RPUs) of agave syrup were modeled to represent typical production systems in the region. Economic indicators, such as economic-financial viability and the B/C ratio, were obtained. Results: Net income is positive in financial terms for the three RPUs, making them viable in short and medium terms. B/C ratios of 1.87, 1.74 and 1.08 were obtained. Study limitations/implications: The results are not statistically significant, so they cannot be extrapolated to the rest of the population. Findings/Conclusions: To increase the competitiveness of syrup, it is essential to disseminate its functional properties, thus creating a more consolidated market that provides security for sale to the producer.