Cocoa Surge, Sustainability Initiatives, and Trade Developments

Cocoa prices have surged due to supply shortages and structural challenges in West Africa, impacting global markets. Meanwhile, CIMMYT and GRUMA aim to boost sustainability in Sonora and Sinaloa’s intensive corn crops.

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Cocoa Crisis: Rising Prices, Global Impact, and Future Challenges

Cocoa prices have surged to record levels due to a decline in global production caused by climate events, pest outbreaks, and inadequate investment in producing countries, reaching over US$10,000/t in April 2024 before stabilizing around $7,658/t in mid-September. This price increase is affecting major consumer markets in Europe and North America, where chocolate prices have risen significantly. The current cocoa shortage presents potential opportunities for Latin American producers like Ecuador and Brazil to expand their market share, provided they can secure necessary support and investment for sustainable production.

Mexico, US Transfer Avocado Inspection Duties to SENASICA

SADER announced that the Animal and Plant Health Inspection Service of the US Department of Agriculture (APHIS-USDA) is fully transferring its avocado inspection responsibilities to SENASICA, reflecting the high-quality work of Mexican producers over the past 27 years. While APHIS will continue to oversee the orchards' phytosanitary conditions, the agreement aims to enhance cooperation between the two nations for efficient and secure avocado exports, with both agencies working closely to inspect exporting packages. This collaboration is crucial for maintaining Mexico's status as the world's largest avocado producer, with significant exports primarily to the United States.

GRUMA, CIMMYT Launch Sustainable White Corn Program

GRUMA and the International Corn and Wheat Improvement Center (CIMMYT) launched the Certified Technician in Sustainable Agriculture Course to enhance sustainable white corn production for human consumption, particularly in Sonora and Sinaloa. This initiative, part of GRUMA's Sustainability Project, aims to train technicians in sustainable practices and regenerative agricultural technologies, addressing critical issues like food security and climate change while improving farmers' livelihoods. 

Mexico, Ghana Strengthen Agricultural Trade Cooperation

Mexico and Ghana have agreed to strengthen agricultural trade, focusing on key crops such as cocoa, rice, and coconut to enhance food security and economic opportunities. A working group, established by officials from both nations, aims to expand cooperation in agricultural development, including a potential memorandum of understanding to formalize their efforts. The collaboration will leverage Mexico's expertise in cocoa research and Ghana's advancements in coconut cultivation, with participation from various agricultural and foreign affairs institutions in both countries.

Agri-Food Exports Reach US$33.3 billion in 1H24

In the first seven months of 2024, Mexico's agri-food exports reached US$33.3 billion, resulting in a trade surplus of US$6.4 billion, a 9.38% increase from the previous year, according to the SADER. Exports rose by 5.54%, with beverages, vegetables, and fruits making up 61% of total exports; notable increases included frozen orange juice (up 80.85%) and cattle exports (up 58.74%). The agricultural and fishing sectors recorded a combined surplus of US$2.7 billion, while the agro-industrial sector reported a surplus of US$3.7 billion, despite a decline of US$1 billion from the previous year.