Corn, Tequila and Fertilizer Drive Mexico Agribusiness

Mexico secured agreements to commercialize 1.2Mt of white corn, expanding financial support for producers and promoting native corn value chains. Meanwhile, Mexico's tequila exports continued to expand in 2025 and the 1H26, supported by steady US demand despite a slight decline in production.

This is the Week in Agribusiness and Food!

Mexico Advances White Corn Commercialization Strategy

Mexico is strengthening its white corn strategy through new commercialization agreements, producer incentives and insurance mechanisms aimed at improving market certainty and reducing dependence on imports as part of its food sovereignty agenda. The government also reached agreements with industry to purchase 1.2Mt of the 2026 harvest while continuing to support thousands of producers, although implementation challenges remain in key producing states. At the same time, federal and state authorities are promoting native corn value chains through market development, biodiversity conservation and new initiatives to preserve traditional varieties and expand opportunities for smallholders. 

Tequila Industry Seeks New Markets as Exports Continue to Grow

Mexico's tequila industry continues to expand exports while pursuing market diversification beyond the United States to strengthen long-term growth and reduce dependence on its largest buyer. Industry leaders are also addressing structural challenges caused by agave oversupply, including abandoned fields, falling farmgate prices and pest outbreaks, while promoting better production planning and traceability. At the same time, the sector is leveraging tequila's cultural heritage and tourism appeal to support exports, regional development and international recognition.

Gruma Global Profits Fall 12% YoY in 2Q26, Hit US$118 Million

Gruma reported a 12% decline in second-quarter net profit as weaker consumer demand and economic uncertainty in the United States weighed on its largest market, despite strong growth across Europe, Asia, Oceania and Central America. The company is pursuing product diversification, evaluating a return to Venezuela and expanding international operations to offset slower US performance. Meanwhile, Gruma is implementing major changes in Mexico following a landmark antitrust ruling that will reshape supplier relationships in the domestic tortilla industry and increase market competition. 

Mexico Invests US$3.2 Billion to Boost Fertilizer Production

Private developers Fermachem and GPO are investing more than US$3.2 billion in new fertilizer plants to expand domestic production of urea and ammonia, reducing Mexico's reliance on imported agricultural inputs and improving food security. The projects, alongside PEMEX's petrochemical expansion, seek to strengthen national fertilizer supply as geopolitical tensions and rising global prices increase costs for farmers. Industry leaders argue that boosting domestic production is essential to improving the resilience and competitiveness of Mexico's agricultural sector.

Mexico, Canada Strengthen Agricultural Cooperation

Mexico and Canada are strengthening agricultural cooperation through new commitments on trade facilitation, regulatory alignment and technical collaboration under the Canada-Mexico Action Plan 2025-2028. The initiative aims to reinforce North American agrifood supply chains, expand opportunities for Indigenous communities and advance cooperation in sustainable agriculture, climate adaptation and sanitary standards. The renewed partnership comes as uncertainty over the future of the USMCA prompts both countries to deepen bilateral ties while industry groups advocate for preserving tariff-free agricultural trade across North America.