Establishing Cucumber Production in Lesser Developed Countries: An Absolute Cost Advantage of Mexico versus Hispaniola Producers
During winter months, a substantial volume of various horticultural products are imported to the United States from the Caribbean and Central and South America. United States cucumber (Cucumis sativus L.) processors who market fresh-pack and refrigerated products require raw product daily to meet consumer demands. Mexico serves as a single-source supplier to all United States processors during this period, and thus Mexican production represents certain price risks. United States processors would consider other growing regions to reduce these risks if financially attractive alternatives could be identified. Therefore, a project was initiated to acquire information on production and export costs in Hispaniola (Dominican Republic and Haiti), and to compare those to Mexican and United States production and transport costs. Experimentation lead to the identification of the critical influences of market prices, costs and conditions for the financial feasibility of establishing a processing cucumber industry on Hispaniola. Comparative evaluation indicated that significant variation in total cost was caused by fluctuations in transport, tariffs, and labor cost components. The causes of variation in transportation costs were distance, method (sea, air, truck), competitive demand (volume), and shipping frequency, consistency, and capacity.