Export.gov - Agribusiness2012

Mexico is among the top 15 world leaders in the agribusiness industry with 27,300 hectares of permanent cropland. Mexico is also 10th in the world in terms of meat production, providing a total of 4,911 metric tons of red meat alone. For poultry production, Mexico is rated 3rd globally.

2010 was a very dynamic year with an increase of 5.8% in the production of Mexico’s 50 most important crops, which represents 86% of the total national agricultural production.

The sub-sectors that registered the most dynamic growth are: corn production with an increase of 17.6%, beans had an increase of 17.9 %, dairy sector had an increase of 1.5%, and cattle 2.1%.

The growing agribusiness sector demands modern agricultural machinery, more efficient technology, fertilizers, enhanced pesticides to protect crops, animal feed, and packaging equipment. A table on tractor by power follows:

Agricultural Heavy Equipment (tractors with models before 2010) HS Code 87019003

	2009	2010	2011
Total Exports	4,635,521	7,106,409	6,008,976
Total Imports	42,507,339	45,142,513	58,940,034
Imports from the U.S.	35,957,764	37,379,887	50,609,646

Agricultural Heavy Equipment (tractors with HP between 140 & 180 HP) HS Code 87019005

	2009	2010	2011
Total Exports	3,017,541	3,157,925	1,277,558
Total Imports	3,581,954	1,410,899	1,623,601
Imports from the U.S.	875,150	213,412	268,252

Agricultural Heavy Equipment (tractors with HP between 106 & 140 HP) HS Code 87019006

	2009	2010	2011
Total Exports	121,900	348,020	0
Total Imports	3,476,460	3,646,013	2,899,301
Imports from the U.S.	2,248,312	2,948,766	2,863,174

Agricultural Heavy Equipment (all other tractors) HS Code 87019001+ Code 87019099

	2009	2010	2011
Total Exports	144,378,189	211,635,601	333,066,718
Total Imports	65,124,511	71,915,236	92,493,729
Imports from the U.S.	24,887,869	27,070,123	38,815,839

Figures are in millions of U.S. dollars.

Source: Secretaria de Economia-SIAVI

Best Prospects/Services Return to top

The agribusiness industry in Mexico is a sector with continuous expansion and an average annual growth of 2%. It is also responsible for 9% of the nation’s foreign direct investment. The government’s investment plan has provided the sector with over US$700 million in the past 5 years.

Modern Agricultural Machinery: This particular sector presents suppliers with strong opportunities, as 70% of Mexican agriculture is still harvested through manual labor utilizing rudimentary tools. Less than 20% of croplands are irrigated, leaving crops dependent on seasonal rains or irrigation through mobile water pumps. Federal government infrastructure development programs have provided this sector with US$300 million for this purpose alone.

Fertilizers: Mexico has no national fertilizer industry which results in farmers either fertilizing their crops with traditional products or not fertilizing at all. During 2010, farmers and organizations continued to express their discontent with the high price of imported fertilizers. Affordable fertilizers have strong market potential for U.S. firms in the agricultural sector.

Pesticides: Pesticides is another sector with virtually no national competition, and with harvestable land increasing yearly, there is strong market demand. These products have also received heavy subsidies by the federal government for small producers.

Packaging Equipment: General packaging equipment has also had a very considerable increase in demand due to producers’ desire to begin packaging their own products. This is the case for the poultry and meat processing industry. Exports require standardized packaging and labeling requirements, which needs advanced technology and machinery that is not produced in Mexico.

Opportunities Return to top

There is virtually no national competition for agribusiness technology and equipment since 90% of products in this sector are imported, presenting an enormous opportunity for U.S. firms. U.S. products are most often the first choice for Mexican companies due in large part to the U.S. product reputation for excellent quality, innovation, and efficiency.

The performance of the Mexican economy is one of the most important factors affecting future agribusiness related purchases. The large number of free trade agreements that Mexico signed has created a more open and globalized economy, affecting local producers’ demand and ability to compete with international and subsidized products.

Resources Return to top

Secretaria de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación

www.sagarpa.gob.mx/

Comisión Federal para la Protección contra Riesgos Sanitarios

www.cofepris.gob.mx/

Asociación Nacional de Comercializadores de Fertilizantes

www.anacofer.com.mx/

Administración General de Aduanas

www.aduanas.sat.gob.mx

Asociacion Mexicana de Horticultura Protegida

www.amhpac.org

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