Mexico’s Agri-Food Trade Surges in Early 2023

The Ministry of Agriculture reported a $5.793 billion surplus in Mexico’s agri-food sector from January to July 2023.

This is a 13.12% rise compared to last year. The increase adds $672 million.

Total agri-food exports hit $31.487 billion. This is the highest in 31 years. Imports reached $25.694 billion. The sector has had a surplus for nine straight years.

From January to June, livestock and fisheries gained $1.078 billion. This is an 11.79% annual rise. Their exports reached $13.651 billion.

The agro-industrial sector also gained. Their surplus is $4.715 billion, up 13.43% from last year. Exports in this part hit $17.836 billion.

Beverages led the export list at 23%. Vegetables followed at 20%, then fruits at 18%. These three made up 61% of all exports.

Beer, tequila, and mezcal had high value. Avocados, tomatoes, baked items, and berries followed them.

Fast-growing exports include soybean oil and live cattle. Cocoa butter, grain sorghum, and coffee mixes also grew.

Other rising exports were grapes, pastas, yeast, and milk concentrates. Pickled veggies, cucumbers, and fresh cabbage also saw growth.

Background

Mexico has a long history of agricultural trade. The country’s climate supports a variety of crops.

Corn, one of the major crops, dates back to ancient civilizations. Livestock farming is also significant, especially cattle and poultry.

In recent years, Mexico has diversified its export portfolio. Apart from traditional items like corn, new products are gaining attention.

Avocados and berries are now key exports, popular in international markets.

Trade agreements have helped the agri-food sector. NAFTA, now updated as USMCA, is a notable example. This agreement opened doors to the U.S. and Canadian markets.

Mexico also faces challenges in its agri-food sector. Water scarcity and land degradation are major concerns.

Government policies aim to address these issues and boost sustainable farming.

Efforts are in place to add value to exports. This includes processed food items like canned goods and beverages. The goal is to climb the value chain and boost revenue.