Mexico’s agricultural exports exceed pre-Covid-19 levels

Mexico‘s agricultural and fishing exports exceeded pre-Covid-19 levels in May 2021, Inegi reported.

At a year-on-year rate, these external sales grew 17.5%, to 1,779.5 million dollars.

That same amount implied a growth of 10% compared to Mexican agricultural and fishing exports in May 2019.

Mexico changed its agricultural policies in the 1990s, shifting from subsidizing the price of corn to providing direct income support for poor farmers.

Agricultural exports

According to an analysis published by the Wilson Center, the theory behind this policy change was that large private farmers would trade corn for fruits and vegetables, while poor farmers would receive direct payments from the government.

The government reasoned that corn and grains could be imported cheaper than producing these products in Mexico.

With the May result, Mexico’s agricultural exports registered an expansion of 5.1% accumulated in the first five months of the current year, adding 9,040.1 million dollars.

The most significant rates in May 2021 were recorded in exports of citrus (91.6%), edible fruits and fruits (48.3%), melon, watermelon and papaya (36.3%), and fresh legumes and vegetables (18.5%) and avocado (16.9 percent).

In contrast, the most relevant annual falls were in exports of raw coffee beans (27.1%) and beef cattle (18.2 percent).

Regarding extractive exports, these were located at 715 million dollars with an annual increase of 80.6 percent.

Trends

Commercial and export agriculture is concentrated in Baja California, Chihuahua, Michoacán, Sonora and Sinaloa.

In general, there has been a spectacular growth in Mexican exports of some basic products, such as avocados, bell peppers, cucumbers and tomatoes.

According to the same analysis, many Mexican farms that produce fruits and vegetables for export are partnerships between US and Mexican grower-exporters, with the US partner providing the capital and technology to improve quality, increase yields, and commercialize the product. to American buyers.

In this way, the North American fresh produce industry is integrating in a similar way to the automotive industry, with US companies sometimes taking the initiative to establish operations in Mexico and provide inputs.