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Agricultural Machinery: Mexico is a priority market for the United States

Mexico is a priority market for U.S. agricultural machinery, according to the U.S. Department of Commerce (DOC).

It is also a priority market for U.S. suppliers of agricultural and food equipment.

Despite broader contractions in the Mexican economy, agribusiness production responded positively to demand for food products, growing 4.5% in 2021 to 290.7 million tons (21.7 million hectares harvested, 1.9 million tons of fishery-related products, and 7.4 million tons of meat).

As such, the industry in Mexico remains poised for continued expansion, driven in part by strong consumer demand and a growing middle class.

From a DOC perspective, Mexico remains a country well suited for large-scale agricultural production due to its large land area and diverse climate.

Agricultural Machinery

According to the Secretariat of Agriculture and Rural Development (Sader), Mexico is the eleventh largest agricultural producer, the twelfth largest livestock producer, the seventeenth largest fishery producer and the twelfth largest food producer in the world.

Overall, the country is the third largest agricultural producer in Latin America.

Of the country’s total 60.8 million acres of arable land, 53.6 million acres are planted, and only 1.5 million acres use irrigation technologies (most recent data is from 2017).

The highly fragmented state of Mexican agriculture leaves significant room for consolidation, technology adoption, and conversion to higher value-added crops that require more sophisticated technologies to control water use.

The growth of the avocado, berry and tomato industries exemplify the trend of seeking increased revenue per ton produced and represent potential export opportunities for U.S.-made equipment and technologies prepared to support Mexican producers.

Similarly, given the global increase in agricultural chemical prices, Mexican agribusiness contacts have shown increasing interest in systems that improve fertilizer utilization to achieve higher yields.

Animal production remains robust, particularly in the dairy, beef, and poultry sectors, increasing 2.2 percent compared to 2020 levels.

Major U.S. farm machinery companies include Caterpillar, Deere & Company, Tractor Supply Company, and AGCO Corporation.

 

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