Avocado, Beer, Cacao, and Meat Industry Shifts

Mexico and the United States are gradually restoring avocado exports from Michoacan after security threats prompted a temporary suspension. Meanwhile, Mexico’s beer industry is facing declining production and sales, but strong domestic sourcing has helped cushion external pressures. 

This is the Week in Agribusiness and Food!

Mexico, United States Resume Avocado Exports

Mexico and the United States are gradually resuming avocado exports from Michoacan after security threats against US inspectors prompted a temporary suspension, with Mexico deploying 1,557 personnel and more than 1,000t initially released for shipment. The disruption highlights the vulnerability of the bilateral avocado supply chain to security and phytosanitary concerns, while California growers are pushing for seasonal restrictions on Mexican imports during the USMCA review. 

Mexico’s Beer Industry Navigates Slower Growth

Mexico’s beer industry is facing slower production, domestic sales, and exports amid inflation and global trade uncertainty, but strong domestic sourcing of inputs is helping producers limit supply chain and tariff exposure. Despite the slowdown, Mexico remains the world’s leading beer exporter, with the sector supporting hundreds of thousands of jobs and extensive agricultural and retail value chains. Major brewers including Heineken and Grupo Modelo continue investing in infrastructure, sustainability, circular economy initiatives, and local supply chains, reinforcing beer’s strategic role in Mexico’s agroindustrial and manufacturing sectors.

Tabasco Strengthens Protection Against Cacao Theft

Tabasco has strengthened legal protections for cacao producers by establishing specific penalties of up to 20 years in prison for the theft, purchase, distribution, or processing of stolen cacao and production equipment. The reform also allows anonymous complaints and requires authorities to investigate theft cases, addressing producers’ concerns over retaliation and economic losses. The measure is particularly relevant to Tabasco, Mexico’s leading cacao-producing state, which accounts for 62.3% of national output and exports around 10% of its production to markets including Germany and France.

SuKarne Explores Pontential US$2 Billion Sale

SuKarne, Mexico’s largest meat exporter, is reportedly exploring a potential sale valued at more than US$2 billion, with Rabobank and BBVA advising on the transaction, although no deal has been confirmed. The company’s vertically integrated model, extensive cattle producer network, and significant share of Mexico’s meat exports could attract major global protein companies and investment funds seeking to expand in North America. The potential transaction comes amid ongoing US-Mexico cattle trade disruptions, tighter regional protein supply, and increased investment in Mexico’s cattle feeding and meat processing capacity.