Avocado Exports Impacted by Peso Appreciation: GCMA

In 1H23, the super peso made avocado exports drop by 17%. Meanwhile, CONCAMIN warned that if Mexico loses the panel on GM corn, US tariffs will affect producers. 

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Mexican Avocado Exports Affected by Super Peso

In 1H23, avocado export volumes dropped 17% due to the so-called super peso. Fernando Cruz, Consultor, Agricultural Markets Consulting Group (GCMA), explained that the appreciation of the peso makes the product more expensive in the American market, since more pesos are required to purchase avocados. Additionally, specialists pointed out that the transition to a new harvest season and competitiveness levels against other countries have also affected sales to the US and European countries. 

Mexico Will Lose the GM Corn Panel: CONCAMIN

The Confederation of Industrial Chambers (CONCAMIN) fears that Mexico will lose the USMCA panel convened as a response to the ban on GM corn, which would lead to the imposition of tariffs by the US government on food sector producers and industrialists. José Abugaber, President, CONCAMIN, stated that Mexico will most likely lose the resolution panel on GM corn given that it lacks evidence of the danger that the grain poses on human health. In this regard, he urged the federal government to avoid a negative scenario for the Mexican economy and to uphold the national legal framework and international trade agreements. 

Tetra Pak Advances Sustainability Strategy

Tetra Pak released its 2022 Sustainability Report, highlighting the company spent over US$32.6 million in the recycling of 1.2 million t of post-consumer packaging last year. Similarly, over the next year it plans to invest up to US$43.5 million to boost its collection and recycling initiatives. Globally, Tetra Pak operates with 84% renewable energy and, in 2022, it reduced its GHG emissions by 39% compared to those emitted in 2019. In Mexico, Tetra Pak recycled 52,866t of packaging waste in 2022, 13% more than the previous year. 

US Requests Settlement Panel Over GM Corn Dispute with Mexico

On Aug. 17, 2023, the US Trade Representative's office (USTR) requested a dispute settlement panel concerning the marketing of GM corn between both countries. The request was made after 75 days of formal consultations, which failed to resolve the parties' differences over the corn dispute. The US claims that Mexico's ban on GM corn imports for human consumption is not based on science and violates its commitments under the USMCA Agreement. In this regard, President López Obrador promised that Mexico would abide by the panel’s results. 

40% of Mexican Households Face Food Insecurity: INEGI

The National Survey of Household Income and Expenditures (ENIGH) 2022, performed by INEGI, showed that last year, four out of every 10 households experienced some difficulty in meeting their food needs. These results reflect a period where food inflation broke records due to an increase in grain and fertilizer prices, as well as the recovery in oil prices. INEGI pointed out that in 2022, spending on food, beverages and tobacco increased by 16% compared to 2020, resulting in Mexican families spending an average of MX$15,059 (US$879.2) per quarter in this category. 

Wine Trends Reflect Shifting Consumer Preferences

Marcos Jofré, CEO for Argentina, Chile and the US, Trivento, talks about how the Argentinian winery has experienced growth over the years, becoming a significant player in the industry. Jofré highlighted that Trivento focuses on delivering quality and value to the public. “We have gained increasing recognition for our wines, with a highly favorable reception from both specialized critics and consumers,” he said. Moreover, he noted that the company places great emphasis on sustainability, investing in reducing greenhouse gas emissions and minimizing water consumption. Looking ahead, Trivento seeks to solidify its position in the Mexican market and expand its global reach through innovation and value-driven strategies.