Estimation of the regional economic impact of a technified swine farm using an Input-Output matrix

Introduction: The present study aims to measure the magnitude of the impact in terms of product, income and employment, induced by investment in a technified farm for the production of pigs in the state of Baja California and thereby identify the most relevant economic branches that transfer that impact. Method: A regionalized input-output matrix was used for the state of Baja California and updated for the base year 2013. This instrument allows to measure the magnitude of the forces of integration and sectorial interdependence and show how the purchases of a certain sector generate a flow of transactions in other sectors within and outside the region. Results: It was found that the total initial investment of 13.6 million pesos would show a multiplier effect of 1.34 times on the regional product, would have an impact on the income of 18.2 million pesos and a generation of 26 jobs at this stage and an impact on the income of 2.3 million of pesos. The evidence showed that the start-up of a farm of this type will require an annual operating expense of 9.3 million pesos with a multiplier effect of 1.76 times the annual expenditure and an impact on the product of 17.9 million pesos, a creation of 32 total employment and an additional income of 3.3 million pesos. The multipliers of greater relevance for the product, employment and income are coincident, come from the economic branches of agriculture in terms of fodder and cereals, livestock, animal feed, slaughter, cutting and packing of meat, the leather tanning industry, the same swine production, the auto transport of cargo, trade and food preparation services. Conclusions : If the Porcine Production Farm Unit were installed, it would show a relevant interdependence with the agricultural, livestock, construction and food industry sectors. The multipliers estimated through Input-Output Matrix suggest that the development of pig farming must be accompanied by an integral agri-food policy that takes into account the synergic effect of those that most affect the economic growth of the pig meat production chain. The evidence generated in this study is a contribution to the process of formulating agricultural growth and development policies that seek the detection and promotion of intersectorial linkages in a given territorial space.