Despite 2021 Growth, Climate Change Could Stomp Agribusiness
Mexico’s Ministry of Agriculture and Rural Development (SADER) reported an almost 3 percent growth in the country’s agricultural production for a third positive year in a row. However, the ministry also reported the arrival of a Centro American locust outbreak in Nuevo Leon and climate change findings forecast a massive hit to production in coming years due to Mexico’s rapid warming.
This Week in Agribusiness:
For Third Year in a Row, Agriculture Registers a Positive Growth
SADER announced that Mexico’s agriculture industry grew by 2.7 percent, according to data from the National Institute of Statistics and Geography (INEGI). This increase followed a 4.8 percent rise in primary activities from 2020, in which agriculture was one of the only industries to see a growth with an increase of 2.0 percent.
A Centro-American Locust Outbreak is Attacking Nuevo Leon
José Manuel Gutiérrez Ruelas, Director of Plant Protection, National Health, Safety, and Quality Service (SENASICA), announced the arrival of the insect Schistocerca piceifrons to Nuevo Leon. According to Gutiérrez Ruelas, the insect had not previously been spotted in the area so the collection of information for laboratory research is necessary. SADER has taken immediate action to control the outbreak to protect the national production of basic, industrial, frugal and vegetable crops.
SADER Foresees Major Production of Lime in Mexico
SADER said that official reports from 2021 sales will show a major production of lime throughout the year, which could add up to 2.96 million tons representing a 4.0 percent growth in comparison to 2020. Despite this growth, the increase in demand and the hardships affecting Colima, Michoacan and Veracruz, have led to an increase in production costs, said the ministry.
Mexico is Warming Up Faster Than the Global Average
According to UNAM’s Program for Investigation in Climate Change (PINCC), the average national temperature has risen by 0.3° C every decade, making Mexico one of the fastest warming countries in the world. UNAM experts further predict a rise of 1.5° C over the next decade and of 2° C by 2050, breaking the country’s commitment to the Paris Climate Agreement to maintain this rise below 2° C. UNAM experts warn that floods will primarily affect Tamaulipas, Veracruz and San Luis Potosi, causing a loss of production in the agricultural field of 5-20 percent in the next two decades and up to 80 percent by the end of the century.