English

Mexico would increase its sugar production by 4% in the 2021-2022 season

Mexico would have a 4% year-on-year increase in its sugar production in the 2021-2022 season, to 6 million 296,000 tons, the United States Department of Agriculture (USDA) projected.

Before, in the 2020-2021 cycle (October-September), Mexican sugar production rose 8.3% annually, to 6 million 058,000 tons.

The USDA forecasts that production in Mexico for the 2021/22 marketing year will recover from last year’s drought-affected season, after abundant rains and optimal growing conditions have been observed in many of the cane-producing states. from the country.

It also estimates that participation in the Maquiladora and Export Manufacturing Industry (IMMEX) program will remain strong, while exports to markets other than the United States are reduced to ensure high yields for sugar mills and exporters.

Final Production by Type

In its most recent forecast for the 2021-2022 season, the USDA estimates an increase of 4% compared to its previous estimates, as the abundant rains have alleviated much of the lingering effects of the drought experienced in the previous two cycles.

Regarding the planted area, it forecasts 823,000 hectares, a slight increase of 2% compared to the previous year, mainly due to the ideal growing conditions.

On the other hand, the harvested area is forecast at 791,000 hectares and national yields at 68 tons of cane per hectare.

Sugar production

Veracruz, Jalisco, San Luis Potosí and Chiapas are the main sugarcane producing states and represent 73% of total sugar production.

In general, sugarcane production in Mexico remains stable due to its high profitability and ease of production.

Producers are highly organized in unions and internal policies, such as the guaranteed reference price, provide stability and additional profitability to the sector.

In addition, according to the USDA, the reference price is negotiated every year and is based on production and export volumes, as well as domestic and international prices.

As a result, Mexico’s sugar prices are among the highest in the world.

 

Publicidad
Mostrar más
Botón volver arriba