Agri-Food Transitions: From Forest-Free Trade to AI in Farming

The Mexican government will support producers to comply with EU’s deforestation-free regulation. Meanwhile, the US will invest US$21 million to enhance sterile screwworm fly development in Mexico. 

This is the Week in Agribusiness!

Mexico Prepares for EU’s Deforestation-Free Trade Rules

Mexico has been classified as a standard-risk country under the EU’s new Regulation on Deforestation-Free Products (EUDR), meaning its exports of key commodities like coffee, cocoa, palm oil, rubber, and wood must prove they are deforestation-free through a traceability system. In response, the Mexican government is providing technical support to producers and exporters to ensure compliance and avoid trade disruptions, while also engaging in technical dialogue with the EU. 

US Puts US$21 Million Toward Mexico's Screwworm Fight

The USDA will invest US$21 million to renovate a sterile fly production facility in Chiapas, Mexico, aiming to combat the spread of the New World Screwworm (NWS) and protect animal health and food security. The upgraded facility will significantly boost the weekly output of sterile flies, strengthening the Sterile Insect Technique (SIT) to push the pest population further south and away from the US border. While technical collaboration continues through site visits and bilateral meetings, current restrictions on live animal imports from Mexico remain in place and are reviewed every 30 days.

Mexican Milk Consumption 35L Below FAO's Recommendation: CANILEC

Mexico’s per capita milk consumption is 35L below the FAO’s recommended level, prompting industry leaders to call for greater efforts to promote dairy intake, particularly to support childhood nutrition and food security. The National Chamber of Milk Industrialists (CANILEC) highlighted opportunities to increase domestic production and reduce reliance on imports, which currently leave the country with a US$1.3 billion trade deficit in dairy. Federal initiatives like the Milk Self-Sufficiency Plan aim to boost national output to 15 billion L annually by 2030, supporting both economic and health goals.

Chapingo Launches AI Degree to Transform Agriculture

Universidad Autónoma de Chapingo (UACh) will launch a new degree in Artificial Intelligence Engineering in Agriculture (IIAA) to meet rising technological demands in the agri-food sector. The program combines core AI subjects with agricultural applications, preparing graduates to tackle challenges from crop monitoring to technology development for rural communities. Developed with international academic partners, the degree reflects the growing role of AI in agriculture, while also emphasizing the need for ethical, socially informed implementation.

Non-Alcoholic Beer Gains Ground in Mexico

Mexico’s non-alcoholic beer market is gaining momentum, growing 30% annually between 2019 and 2024, despite representing just 0.6% of the total beer market. Grupo Modelo, a key industry player, sees strong potential for expansion as health-conscious consumers, especially younger generations, shift away from alcohol. The company is investing in product innovation to match traditional beer flavors and supporting broader initiatives around responsible consumption and national economic development.