Study of the Mexican Cocoa Market: An Analysis of Its Competitiveness (2010–2021)

Abstract

Cocoa is one of the main products consumed worldwide that is similar to coffee; a primary difference between coffee and cocoa is that cocoa is produced in developing countries and is consumed mainly in industrialized countries. Mexico was the country that made cocoa known to the world. The objective of the study was to analyze the competitiveness at the macroeconomic level of the Mexican cocoa product in the world during the period 2010–2021. A macroeconomic analysis was carried out using six indices: Balassa index, Vollrath Index, Additive Revealed Competitive Advantage Ratio, Trade Openness Index, Export and Import Index, and Self-Sufficiency Index. The industrialization of cocoa is the denaturation of the product, which is launched onto the market with little or no nutritional content, due to the alteration of the raw material with formulas based on vegetable fats, artificial colors, and flavors. For example, a commercial chocolate bar can have only 25–35% cocoa mass, semisweet chocolate bars can vary from 45 to 99% cocoa, while white chocolate bars only contain cocoa butter, milk, and sugar. These facts result in a decrease in the competitiveness of the product in the international market, in addition to the effects produced on its profitability for the producer—an increase in the cost of raw materials and a drop in real profits. These factors generate dependency on the international market for the production.

1. Introduction

Even though cocoa is produced in developing countries, it is consumed mainly in developed nations. The countries that produce raw materials continue to belong to the so-called Third World, and it is the manufacturers, from the First World, who add value—they transform cocoa and obtain a variety of final products to be marketed to the rest of the world, which is not an unusual system in a globalized economy [1,2].

The objective of the study was to analyze the competitiveness at the macroeconomic level of the Mexican cocoa product in the world during the period 2010–2021. Our study will answer the following questions: Do we know the current state of competitiveness of Mexican cocoa exports? Did we analyze Mexico’s participation in the international market? Did we show that cocoa exports from Mexico have decreased since the pandemic? What can be done to improve the performance of this product in terms of competitiveness? If not improved, cocoa’s ancient Mesoamerican roots, which encompass a complex process—loving cultivation, respecting the land, inheriting and generally transmitting learning and experiences—will be forgotten. Other factors include the wisdom of our ancestors regarding agriculture and the search for methods to make the earth more fertile and generous towards us. The image of chocolate as a product in demand due to Mexican tradition has been distorted [3,4,5,6].

Following are the main theories that speak of competitiveness: Romo and Musik (2005), cited by Nava, Cernas and Becerril (2017) indicate that competitiveness is widely related to “the ability to create an environment that favors sustained productivity growth and that reflects the increase in the standard of living of the population”. This points out that the factors that make it possible to increase competitiveness occur in the micro and macro environments [7,8,9,10,11].

Bajo (1991), quoting David Ricardo, indicates that trade only occurs when there is a comparative advantage, that is, that the merchandise produced has a lower relative cost than the cost of producing it elsewhere; on the other hand, it indicates that the first approximation given to competitiveness is Adam Smith’s theory of absolute advantage. Smith mentions that a country will only export merchandise that has a production cost in absolute terms that is less than the cost of producing the same merchandise in another country [12].

Cantillon (1950) points out that competitiveness occurs if a country has a production in quantities exceeding its consumption, since then it is advantageous to export abroad to sell and obtain profits through international trade. Porter (1991) mentions that for a nation, industry, or production chain to be competitive, it must generate comparative advantages, and that these will be created from four fundamental elements that are represented in Figure 1, known as the diamond [13]. The neoclassical theory affirms that international trade can be interpreted through a comparative advantage in which each country focuses on the production of goods and services in which it has pre-eminence, taking advantage of the differences that exist with respect to other countries. At the macroeconomic level, exports mean an increase in the domestic production of goods and in the income of the exporters. Participating agents point out that those nations whose economic growth rates are high coincide with the development of their foreign trade; furthermore, they suggest that competitiveness, productivity, and growth are closely linked to competition.

Max Weber (1867), a German sociologist, established the relationships among values, religious beliefs, and the economic development of nations (see Max Weber (1864–1920), The Protestant Ethic and the Spirit of Capitalism (1905) in relation to competition.) Joseph Shumpeter (1942) emphasized the role of the entrepreneur as a factor in competitiveness, stressing that progress is the result of imbalances that favor innovation and technological improvement (see Joseph Shumpeter (1883–1950), Capitalism, Socialism, and Democracy (1974)). Alfred P. Sloan and Peter Drucker (1965) further developed the concept of management as a major factor in competitiveness (see Alfred P. Sloan (1875–1965): My Years at General Motors (1963) and Peter Drucker, The Age of Discontinuity (1969)). Robert Solow (1982) studied the factors underlying economic growth in the United States between 1948 and 1982 to highlight the importance of education, technological innovation, and increasing technical knowledge (know-how) (see Robert Solow (1924), Technical Change and the Aggregate Production Function (1957) [13,14]).

2. Materials and Methods

This work is made up of four sections: the first highlights some conceptual elements that help to express the definition of competitiveness and the levels of competitiveness that exist; the second section presents the methodology to be used to measure the competitiveness of cocoa at the country level. Subsequently, in the third section, the calculation of the indices is carried out followed by the explanation of their behavior throughout the period from 2010 to 2021. In the fourth and last section, the conclusions of the research work are presented [14].

Although there are differing conceptions and criteria related to the subject, similar ideas can be found, especially those associated with the opening, competition, and growth of a company, economic sector, or a nation. The study of competitiveness has provoked growing interest among scholars. [15]. It was emphasized that the first analyses of competitiveness began in the 17th century with the classical economists Adam Smith and David Ricardo, who were pioneers on the subject and advanced theories of absolute and comparative advantage, respectively. In his last work, Ricardo concludes that international trade is mutually beneficial for the participating nations. Michael Porter, one of the main specialists in competitiveness, presents his theory in the book Competitive Strategy, where he states that the efficient use of a company’s resources determines the competitiveness of an economy [16,17,18,19].

The method used in this study is hypothetical deductive, and a longitudinal study is performed. The measurement of competitiveness at the macroeconomic level is carried out by calculating six indices: The Balassa index, The Vollrath Index, the Advantage Additive Revealed Competitiveness, Trade Openness, The Exports and Imports Index, and the Self-Sufficiency Index, using national and global data. For a better understanding, the method of calculating the indices is described in the section corresponding to the discussion [14,15].

In the case of this work, only the measurement of competitiveness at the macroeconomic level is used. At the macroeconomic level, competitiveness is the ability of a country to face global competition; this implies that it can export and sell in foreign markets, that it has the ability and efficiency to create, produce, and distribute products or services in international markets, and that it maintains growing profits from its resources and defends its domestic market with respect to the competition of imported products [16].

Competitiveness is a concept that is measured on three levels: macroeconomic, mesoeconomic, and microeconomic. The macro level refers to the ability of a country to enter the world market, and according to Ayala et al. [17], is divided into two aspects: macroeconomic dynamics and macroeconomic efficiency. In the first, the increase in competitiveness is based on the variables that determine productivity, such as investment, growth of the Gross Domestic Product (GDP), levels of internal savings, the innovation rate, and capital development logistics. The second aspect considers the variables that determine the costs and prices at the company level, since at the macroeconomic level a country must have a competitive real price and macroeconomic stability to be able to compete worldwide [18,19,20].

At the mesoeconomic level, competitiveness is determined to be the capacity to increase production with respect to other regions, and it is described in relation to the natural resources that the regions possess, the climate, the development of infrastructure, telecommunications, human capital, and the union of the producers of the region. The latter refers to the creation of networks by the companies or the degree of productive complementarity that they have for collaboration [21].

The United States of America is the country that registers the highest consumption of cocoa in the world, both in the American continent and worldwide. Consumption of cocoa in America measures 757,264; followed by Germany at 324,778; France at 229,556; United Kingdom, 225,000; Russia, 197,056; Brazil, 175,078; Japan, 164,056; Spain, 106,200; Italy, 92,878; Canada, 84,378; Australia, 666,978; and Mexico with 62,778. Worldwide, on average, there are 5.5 million small producers, with plots of 0.2 to 0.5 hectares, representing a generator of employment and income derived from exports, for rural areas; it is these producers that generate between 80 and 90% of the world’s production [22,23,24].

Cocoa Sector

Cocoa production is of significant importance in Latin America and the Caribbean and is carried out there by more than 350,000 producer families, and at least 1,750,000 people depend on or directly benefit from its production in 23 countries of the American continent. In Mexico, cocoa production employs 45,000 producers. The main cocoa producing countries in Latin America are Ecuador with 90,000 producers; Brazil, 62; Peru, 45; Mexico, 45; Dominican Republic, 36; Colombia, 27; and Venezuela, 15 [25,26].

The first humans to taste cocoa in the form of a drink were the Olmecs (1500 to 400 B.C.) They ground the cocoa beans, mixed them with water, and added spices, chili peppers, and herbs. The Olmecs were the first to cultivate cocoa in Mexico. Over the centuries, the cocoa culture spread to the Mayan (600 B.C.) and Aztec (1400 B.C.) civilizations. The Mayans used the cocoa pod to create a drink around the year 600. The Aztecs had a predilection for cocoa; they prepared a bitter and concentrated concoction called techocolat, whose consumption was reserved exclusively for the emperor, nobles, and warriors. The pod of the cocoa was worth more to the Indians than gold, and they used it as currency for barter. In the 16th century, when Christopher Columbus arrived in America, the indigenous people drank the well-known “xocolatl”, a drink with a strong flavor that produced great vitality and energy [27].

The cultivation of cocoa in Mexico was spread at that time throughout the temperate and hot zones of the country. It was grown from the province of Tabasco to Michoacán, Colima, Chiapas, and Campeche. It was produced spontaneously, but three main varieties of the plant were also cultivated: Quauhcahuatl, Xochicahuatl, and Tlacacahuatl. The most appreciated cocoas were those from the Tabasco and Soconusco areas in Chiapas due to the large size of their seeds, as well as their flavor and aroma. In 1615 cocoa was introduced into France, thanks to the royal union of Louis XIII with the Spanish princess Anne of Austria. In 1646 it was introduced in Germany, and in 1657 it was introduced in England, where tasting rooms such as the “Cacao Tree” and “Whites” were opened [28].

In 1659 the first chocolate factory was opened in Paris. In 1697 a Swiss tasted chocolate in Belgium and brought it to his country of origin in 1711. Cocoa also reached Austria through Emperor Charles VI. In 1720 Italian chocolatiers were acclaimed for the high quality of their products. It was not until 1765 that chocolate was discovered by the Americans, when they were a colony of England. In 1776 the Frenchman Doret invented a hydraulic machine that could grind cocoa beans into a paste, which led to the production of chocolate in copious quantities. In 1819, in Paris, Pelletier installed one of the first chocolate factories that used steam. In that year, Fransi Louis Cailler founded the first chocolate shop in that country in Vevey, Switzerland, and in 1831 Ammédée Kohler established the second chocolate shop in Lausanne, Switzerland. During 1830 and 1879 in Vevey, Switzerland, Henri Nestlé’s laboratory was adjacent to a small chocolate shop created by Daniel Peter [29].

In 1828, the Dutchman Conrad Van Houten invented a dam that allowed him to extract the fat, that is, the cocoa butter, leaving the cocoa powder that we know today as bitter cocoa. In 1847, England proposed for the first time, thanks to the ingenuity of the house of Fry and Sounds, chocolate in a solid form. In 1893, the confectioner Milton S. Hershey discovered chocolate at a Universal Exhibition in Chicago and began to produce it by opening a factory in Pennsylvania [29,30].

In 2018, the chocolate industry grew five percent, and the expectation was to maintain that rate, but the reality was that the industry increased only one percent in the first half of 2019. Mexico ranks eleventh in production worldwide with 28 thousand tons and an area of 117,000 ha; but it needs close to 120 thousand tons to cover its internal demand [31].

In Tabasco, 10 of the 17 municipalities that make up the state are dedicated to the cultivation of cocoa, the most prominent being Comalcalco, Cárdenas, Cunduacán, and Huimanguillo, which together produce 87% of the production of said state. Tabasco contributes 66.9% of the volume of national production, with 17,281 tons harvested in an area of 41,000 hectares; Chiapas follows with 32.9%, at 9346 tons, and Guerrero with only 236 tons, which represents 0.2%. There are few producing states in our country, but due to their climates and types of soil, Veracruz and Nayarit have great potential for cocoa cultivation [32,33,34].

Cocoa exports (from Veracruz and Nayarit) are minimal, an estimated 621 tons of which 79% (1) go to Belgium and North America, to gourmet chocolate companies that seek Mexican cocoa for its fine aroma that makes it different from other cocoa. Mexico has a cocoa production and consumption deficit, so to satisfy domestic demand, cocoa is imported from Ecuador, the Ivory Coast, the Dominican Republic, Colombia, and Ghana [35,36].

Cocoa is obtained from a “Creole” variety, that is, it is only found in Mexico. Between 75 and 80% of the production volume in the world is obtained from the “Forastero” variety, which is characterized by a very light aroma and flavor, and the “Trinitario”, as well as the Criollo, which has a remarkable aroma, but even so, the former surpasses it in quality.

Per capita cocoa consumption in Mexico is 0.5 kg and represents 0.6% of the total expenditure on food and beverages by Mexican families. The Secretary of Agriculture estimates that by 2030 the consumption and national production of cocoa will register a growth of 76.97% and 19.49%, respectively [37].

Table 1. Cocoa Production in Mexico 2010–2021.

Year	Surface		Production (Tons)	Performance	PMR	Production Value
	(ha)			(Tons/ha)	($/Tons)	(Miles de Pesos)
	Sown	Harvested
2010	61,344.25	61,187.25	27,173.61	0.44	$37,473.85	$1,018,299.71
2011	61,006.33	60,708.25	21,387.52	0.35	$40,268.58	$861,245.16
2012	61,612.98	61,385.98	27,619.11	0.45	$38,268.74	$1,056,948.67
2013	61,319.10	61,168.10	27,844.12	0.46	$36,503.24	$1,016,400.51
2014	61,562.10	59,623.60	26,969.36	0.45	$35,525.69	$958,105.03
2015	61,397.06	59,118.06	28,006.59	0.47	$36,948.19	$1,034,792.76
2016	59,841.55	58,733.55	26,863.09	0.46	$39,110.61	$1,050,631.84
2017	59,837.80	58,690.30	27,287.25	0.46	$39,370.16	$1,074,303.38
2018	59,521.46	58,360.96	28,398.86	0.49	$37,899.54	$1,076,303.75
2019	710,360.63	629,300.47	900,215.33	1.43	$5,249.48	$4,725,662.44
2020	59,655.16	58,598.16	29,428.77	0.5	$40,503.12	$1,191,956.93
2021	52,993.90	51,952.83	28,105.84	0.54	$41,870.70	$1,176,811.11

Source: own elaboration with data from SAGARPA, several years.

shows the situation at the national level of production, in two important items in terms of production and value, with 2019 being the year prior to the pandemic as the one with the greatest benefits in monetary terms, with $4,725,662 resulting from 900,215 tons.

Figure 2 shows the years 2013 and 2017 where exports show growth; they were not years with large productions, but they do show that production was destined for exports.

Figure 2 shows an increase in exports in the years 2016 and 2019, similar to each other in the first year, 116,329 and 114,310 thousand dollars, although an increase in production is shown in 2019, and imports continue to increase, which translates into a competitive item.

3. Results

3.1. Balassa Index

This index is also known as the Revealed Competitive Advantage of Exports (IVCRE) index and measures the relative performance of exports by country and sector, compared to the share in world exports of the same good divided by its share in exports in the total world. In the case of cocoa, the Balassa index is calculated as follows:

$$I{B}_{Méx}^{GBC}=\frac{\raisebox{1ex}{$X_{Méx-EU}^{GBC}$}\!\left/ \!\raisebox{-1ex}{$X{T}_{Méx-world}$}\right.}{\raisebox{1ex}{$M{T}_{Méx}^{EU}$}\!\left/ \!\raisebox{-1ex}{$M{T}_{world}^{EU}$}\right.}$$

where, $X_{Méx-EU}^{GBC}$, are the exports of cocoa from Mexico to the United States, $X{T}_{Méx-world}$, are the total exports of Mexico, $M{T}_{Méx}^{EU}$, are the imports of United States from Mexico and $M{T}_{world}^{EU}$ are total cocoa imports.

The term of the numerator represents the participation of the country’s product in the world market, and the second shows the country’s total exports in world trade. This index takes three values [Durán and Álvarez, 2008], if IB ≥ 0.33 ≤ 1, there is an advantage for the country; if IB ≥ −0.33 ≤ −1, there is a disadvantage for the country, and if IB is between −0.33 and 0.33 there is a tendency towards intra-product trade. Therefore, the calculation of this index concerning cocoa production indicates the participation of cocoa exports from Mexico in the world market. The result of the calculation of the Balassa index shows a drop in 2014, the participation of the cocoa industry in Mexico has a decreasing trend and close to zero; therefore, the country is at a disadvantage in this activity and is competitive only for an intra-product trade.

After 2015, exceptions occur in 2017 and 2018, periods during which macroeconomic variables were stable in Mexico. However, this shows that the country gained competitiveness, since during these periods cocoa exports increased due to increases in production, innovation, technology, or other factors.

3.2. Vollrath Index (IV)

This quantifies the competitiveness of a product, based on a global comparison (Cerda et al., 2008), the Vollrath Index is composed of three revealed competitive advantages, followed by a competitiveness analysis (Fertö and Hubbard, 2002); calculation is carried out by using logarithms, and the way to calculate it is:

$${\mathrm{IV}}_{\mathrm{GBC}}=\mathrm{LN}\frac{\raisebox{1ex}{${\mathrm{X}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}$}\!\left/ \!\raisebox{-1ex}{${\mathrm{XT}}_{\mathrm{M}\mathrm{é}\mathrm{x}}$}\right.}{\raisebox{1ex}{${\mathrm{X}}_{\mathrm{EU}}^{\mathrm{GBC}}$}\!\left/ \!\raisebox{-1ex}{${\mathrm{XT}}_{\mathrm{EU}}$}\right.}-\mathrm{LN}\frac{\raisebox{1ex}{${\mathrm{M}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}$}\!\left/ \!\raisebox{-1ex}{${\mathrm{MT}}_{\mathrm{M}\mathrm{é}\mathrm{x}}$}\right.}{\raisebox{1ex}{${\mathrm{M}}_{\mathrm{EU}}^{\mathrm{GBC}}$}\!\left/ \!\raisebox{-1ex}{${\mathrm{MT}}_{\mathrm{EU}}$}\right.}$$

where $X_{Méx}^{GBC}$, $X_{EU}^{GBC}$ are the cocoa exports of Mexico and the United States respectively, $X{T}_{Méx}$, $X{T}_{EU}$, are the total exports of Mexico and the United States, and $M_{Méx}^{GBC}$, $M_{EU}^{GBC}$, $M{T}_{Méx}$, $M{T}_{EU}$ are cocoa imports and total imports from Mexico and the United States. Therefore, the objective of calculating the Vollrath Index is to determine if there is competitiveness in Mexico’s cocoa exports with respect to the rest of the world, or if competitiveness is lost because imports of this product by the country are greater than the share of Mexico’s exports to the world market.

The result of calculating this index for the period from 2010 to 2021 shows that the competitiveness of cocoa production has a decreasing trend; that is, it shows a lower participation rate in the world market, except for 2019.

After 2015, cocoa exports from Mexico increased their share, going from 5708 to 73,631 dollars, that is, an increase of more than 100%. However, this growth was not constant due to the gradual decrease in exports and the fact that it worsened with the start of the pandemic, which increased the volume of the country’s imports, generating a reduction in the Revealed Advantage of Imports (VRI). This increase in imports was followed by a smaller increase in exports; the increase in imports occurred as a consequence of the growth of real producer prices. For the year 2017, cocoa exported 2811 thousand dollars, and grew again as an effect of the 156% increase in its international price, which reduced imports as shown in graph 2 and increased the Vollrath Index.

3.3. Additive Revealed Competitive Advantage Ratio (VCRA)

This index measures the competitiveness of cocoa production in Mexico in relation to global cocoa production and is mainly based on the theory of general equilibrium, which indicates that the world market is closer to a perfectly competitive market than national markets. This index is calculated as follows:

$${\mathrm{VCRA}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}=\left[\left(\raisebox{1ex}{${\mathrm{X}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}$}\!\left/ \!\raisebox{-1ex}{${\mathrm{XT}}_{\mathrm{M}\mathrm{é}\mathrm{x}}$}\right.\right)-\left(\raisebox{1ex}{${\mathrm{X}}_{world}^{\mathrm{GBC}}$}\!\left/ \!\raisebox{-1ex}{${\mathrm{XT}}_{world}$}\right.\right)\right]$$

where, $X_{Méx}^{GBC}$, are the exports of cocoa in Mexico, $X{T}_{Méx}$, the total exports of Mexico and $X_{world}^{GBC}$, $X{T}_{world}$, are the same variables, but worldwide. The VCR index presents values between −1 and 1, considering positive values as competitive and assigning the value of 1 to specialization in the production of a good in the country under study (Hoen and Osterhaven, 2006).

The objective of calculating this index is to determine if Mexico has a competitive production with respect to world production. The result is that in Mexico cocoa production shows positive values; however, these values continually decrease, and the value of the index is close to zero, with a continuous loss in competitiveness as a result of the pandemic that occurred after 2019. The results can be seen in Figure 1.

3.4. Trade Openness Index (IAC)

This index is obtained from the sum of imports plus exports, as a percentage of national cocoa production; The formula for this index is as follows:

$${\mathrm{IAC}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}=\left[\frac{{\mathrm{X}}_{\mathrm{m}\mathrm{É}\mathrm{X}}^{\mathrm{GBC}}+{\mathrm{M}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}}{{\mathrm{PIB}}_{\mathrm{M}\mathrm{é}\mathrm{x}}}\right]$$

where, $X_{mÉX}^{GBC}$, $M_{Méx}^{GBC}$ are the exports and imports of cocoa from Mexico and $PI{B}_{Méx}$, is the Gross Domestic Product of Mexico. The commercial openness index measures the degree of insertion of a country in international markets (Ayala et al., 2011), for which the calculation of this index has the function of determining if Mexico integrates its cocoa production into the international market [17].

The trend is growing, not only in cocoa production, but in all sectors, and indicates that Mexico has increased its trade relations with foreign markets; However, the trend does not show an improvement in cocoa competitiveness after the pandemic, since competitiveness is a condition that depends on the level of production and export capacity, and as we have seen, Mexico tends to increase its imports. And only due to temporary events such as depreciation of the peso or economic crises, does it increase exports.

3.5. Export and Import Index (IEI)

The Export and Import Index defines whether a country is in deficit or in surplus. This index measures the capacity of a country to produce its own food (Sepúlveda, 2008).

$${\mathrm{IEI}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}={\mathrm{VRE}}_{\mathrm{MEX}}^{\mathrm{GBC}}-{\mathrm{VRM}}_{\mathrm{MEX}}^{\mathrm{GBC}}=\frac{\raisebox{1ex}{${\mathrm{X}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{ \mathrm{GBC}}$}\!\left/ \!\raisebox{-1ex}{${\mathrm{XT}}_{\mathrm{M}\mathrm{é}\mathrm{x}}$}\right.}{\raisebox{1ex}{${\mathrm{X}}_{\mathrm{EU}}^{\mathrm{GBC}}$}\!\left/ \!\raisebox{-1ex}{${\mathrm{XT}}_{\mathrm{EU}}$}\right.}-\frac{\raisebox{1ex}{${\mathrm{M}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}$}\!\left/ \!\raisebox{-1ex}{${\mathrm{MT}}_{\mathrm{M}\mathrm{é}\mathrm{x}}$}\right.}{\raisebox{1ex}{${\mathrm{M}}_{\mathrm{EU}}^{\mathrm{GBC}}$}\!\left/ \!\raisebox{-1ex}{${\mathrm{MT}}_{\mathrm{EU}}$}\right.}$$

where $VR{E}_{MEX}^{GBC}$ and $VR{M}_{MEX}^{GBC}$, are the Revealed Advantage of Exports and the Revealed Advantage of Imports of cocoa in Mexico; cocoa exports and totals from Mexico and the United States are represented by: $X_{Méx}^{ GBC}$, and $X_{EU}^{GBC}$. Cocoa imports and totals from Mexico and the United States, by $M_{Méx}^{GBC}$, $M_{EU}^{GBC}$, $M{T}_{Méx}$, $M{T}_{EU}$. The reason this index is calculated is to determine if Mexico can supply its internal consumption of cocoa or if it is necessary to resort to external markets.

The IEI reaffirms that in Mexico the tendency is to lose competitiveness, that is, cocoa exports, which do not have a greater participation in the country’s total exports, are decreasing for the period of 2019 to 2021. If the VRE has a decreasing trend, this implies that cocoa production has less participation in external competition, while the VRI indicates that the internal demand for cocoa in Mexico depends to a greater extent on foreign trade. The values of these indices, from the commercial opening that begins with the GATT until the year 2015, have a negative TMCA of 8.1 and 0.4% for the VRE and VRI respectively, and show an IEI in line with these findings.

3.6. Self-Sufficiency Index (AI)

This index is used to define the country’s competitiveness in relation to its food dependence, which represents the percentage of food that a country consumes that comes from external markets and is calculated with the following formula [15].

$${\mathrm{IA}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}=\left[\frac{{\mathrm{P}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}}{\left({\mathrm{P}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}+{\mathrm{M}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}\right)-{\mathrm{X}}_{\mathrm{M}\mathrm{é}\mathrm{x}}^{\mathrm{GBC}}}\right]$$

where, $X_{Méx}^{GBC}$, $M_{Méx}^{GBC}$, and $P_{Méx}^{GBC}$, are the exports, imports, and production of cocoa in Mexico. When exports are greater than imports, there is food self-sufficiency; otherwise, the country depends on foreign trade to meet its demand [17].

According to this index, Mexico shows a reduction in its cacao feeding capacity. From 2013 to 2016, the country had a reduction in its TCMA of 1.2%, but an increase after 2019 as a result of the increase in cocoa imports and the reduction of exports. The index shows growth points for the years 2013 and 2017 originated by a greater increase in exports compared to imports of cocoa. The calculation of the cocoa competitiveness measurement indices shows that this is an uncompetitive activity; this competitiveness decreases due to the fact that imports are greater than exports in Mexico. In four of the six indices used, it is shown that the cocoa producing activity is not competitive in the period from 2005 to 2009.

Table 2. Mexico. Summary of the result of the cocoa competitiveness indices 2010–2021.

Índex	2002–2006	2007–2011	2012–2016	2017–2021
Balassa	C	NC	C	C
Vollrath	C	NC	NC	NC
VCRA	C	NC	NC	NC
IEI	C	NC	NC	NC
Self-sufficiency	C	NC	NC	NC

Source: Own elaboration based on the calculation of the competitiveness indices. Note: C indicates that there is competition and NC that there is no competition.

show. The Balassa index reflects that during the period 2002–2006 Mexico was competitive; the index, however, shows a downward trend during the period analyzed. The Vollrath Index shows a decreasing trend in all years and is only competitive in 2013 and 2017. Regarding the VCRA index, negative numbers are obtained, which indicates a higher growth of cocoa imports; the behavior is the same as indicated by the Vollrath. The Commercial Openness index shows the same results as the previous two—2013, 2017 and 2018 show growth in exports. The IEI shows a decreasing trend in the competitiveness of cocoa, which is indicated by the increase in imports.

The results obtained through the indices show the relationship that Mexico currently has with a product discovered by the Olmec civilization, who were the first to discover the taste of cocoa and to start cultivating it between 1500 BC and 400 AD.

4. Discussion

The data shows that the production of cocoa in Mexico is not competitive, despite the fact that it is the raw material of a product that is consumed by people at diverse socioeconomic levels all over the world. In addition to its ancestrally known properties, research shows health-related qualities in cocoa due to the flavonoids of cocoa beans; the tissues of vegetable fibers have anti-inflammatory properties that regulate triglycerides, phospholipids, and cholesterol. Furthermore, they contribute to lowering blood pressure, slow down the aging process, and improve the performance of mental processes, including memory. Avendano and Schwentesius (2004) explain that the macroeconomic measurement of competitiveness can be found by quantifying exports using various indicators, with the advantage that these can be estimated with trade statistics reported by various agencies [19].

According to Garay, cited by Roa and Herrera (2006), the mesoeconomic level of competitiveness consists of what is known as the competitiveness of the conglomerates, and is itself formed by three levels: (1) the logistic level that allows the development of competitiveness through the integration of local infrastructure (number of airports, international bridges, telecommunications, etc.); (2) the organizational level, which makes it possible to generate economies of agglomeration or clusters; (3) the intellectual level. At the microeconomic level, competitiveness is the ability of a company to increase its productive efficiency individually in order to stay in the market; this level also addresses the increase in the capacities of companies through the differentiation of demand, the reduction in production cycles, the creation of innovations, and the application of new management methods, among other factors [38,39,40].

According to Villarreal and Ramos (2002), competitiveness at the micro level is the starting point of systemic competitiveness, since it is the companies themselves that initially and finally must face international competition in national markets, which requires management of competitive and sustainable companies that are intelligent in organization, flexible in production, and efficient in marketing [38,39].

Authors should discuss the results and how they can be interpreted from the perspective of previous studies and of working hypotheses. The findings and their implications should be discussed in the broadest context possible. Future research directions may also be highlighted [40,41,42].

5. Conclusions

In Mexico there are areas with great potential for the cultivation of cocoa, although this tree needs particular climatic and soil conditions, which is why it is limited to certain places and cannot be cultivated extensively.

In the last decade, cocoa drastically lost competitiveness; basically, it stopped exporting at the rate of growth that existed before the signing of the Free Trade Agreement with the United States and Canada.

An activity with a cultural tradition that has not maintained its participation in the international market shows a decrease in periods of instability in the macroeconomic variables of Mexico.

During the period analyzed in this work, 2010–2021, and according to the reviewed literature, the indices that were used to measure the commercial opening of cocoa at the macroeconomic level show that Mexico is not competitive, except for some years in which competition was lower. Increases were due to temporary or exogenous factors, except for 2019, which showed a significant increase in production, while the other years’ production was maintained rather than changeable.

It is necessary to promote the production of high-quality Mexican cocoa by promoting sustainable crops and supporting the improvement of the living conditions of farmers and their families, in order to make Mexico a country with greater worldwide recognition for the quality of its cocoa, guaranteeing a sustainable supply of this crop that benefits both the producers and the entire supply chain due to its high value, as indicated by the theory proposed by Porter (1991).