Droughts Hit Mexico; Poverty on the Rise: The Week in Review

The Mexican north and northwest are facing a severe drought that might not abate until late 2022. Meanwhile, poverty levels are rising in Mexico and abroad, putting in danger the future of the world’s population.

While in general foreign businesses have had great experiences in Mexico, a bad experience can affect the country’s image for a long time, explained United Producers of Mexico.

Interested in more? Here are the week’s major headlines in Agribusiness & Food!

What is the New Meaning of Poverty?

Global challenges are changing the meaning of poverty. “Reversing the damage caused by the pandemic and the war in Ukraine will require action to prevent fragmentation in business networks and invest in education and digital technologies. Also, promote labor force participation through active labor market policies,” said the World Bank Global Economic Prospects. The Economic Commission for Latin America and the Caribbean (ECLAC) forecasts that poverty and extreme poverty will rise above the levels estimated for 2021. 

Drought to Continue Throughout 2022: CONAGUA

The Mexican north and northwest are facing a severe drought that might not abate until late 2022, warns the National Water Commission (CONAGUA). The commission’s Drought Monitor reports that 72.58 percent of Mexican territory is showing signs of drought, which ranges from mild to severe. This percentage is slightly lower than 15 days ago when CONAGUA indicated that 77.68 percent of the country was suffering droughts.

Mexico is facing a complex situation as it has insufficient policies to protect water, said Leticia Merino Pérez, University Coordinator for Sustainability, UNAM. The country’s concession system of the National Water Law has allowed more water to be licensed than is available in many watersheds, she added. Besides this, it is estimated that eight persons own 80 percent of the concessioned water, limiting access to this essential resource.

‘Thank You for Your Business, Mexico’

While in general foreign businesses have had great experiences in Mexico, a bad experience can affect the country’s image for a long time. “International buyers know each other, talk to each other, and whenever any of the buyers have had a negative experience with Mexican exporters, it permeates the collective memory of importers, distributors, and supermarket sourcing managers. Even though there are many experienced, qualified exporters, it is often an uphill battle when their potential clients already have a certain image encrusted in their memory,” said Lia Bijnsdorp, Managing Director of United Producers of Mexico (UPM).