Fishermen Cry for Help

The COVID-19 contingency comes at an unwelcome time for agricultural producers, especially since 2019 proved to be a record year for several agricultural crops and animal production. Lower consumption is pushing fishermen to desperation as they see market prices drop. Meanwhile, meat consumption has also gone down, while supply remains ample.

The government is determined to continue its guaranteed price programs and other incentivizing projects to help producers around the country. In the case of the Fertilizer program, mechanisms are being reviewed that could allow farmer participation without a physical registration process.

In the beer sector, it is the craft beer brewers which are suffering the hardest, with approximately 50 percent facing potential bankruptcy if the contingency carries on. Beer giants Grupo Modelo and Heineken are also facing losses with bars and restaurants shutdown. They have taken to donating goods to help the COVID-19 fight.

Ready for more? Here is the week’s most important news!

COVID-19

Mexico has urged G20 countries and international organizations to create a stronger collaboration to strengthen resilience against the impact of COVID-19 like crises.

More than 200,000 producers will receive fertilizers despite the ongoing COVID-19 contingency, the government has stated. The producers no longer have to fill out their applications at a contact point for the fertilizer program.

In the US, COVID-19 related losses in the pork industry are estimated at US$5 billion.

The meat sector in Queretaro has experienced a contraction as a result of lower meat consumption, drop in prices and oversupply. The state government is looking at incentivizing local trade, reducing import levels and diversifying the points of sale.  

Coastal fishermen are calling for help as they face dropping market prices for fish and shellfish due to lower consumption. As an example, in Chiapas crab used to be sold for US$1 a kilo, while now being bought at 32 to 40 cents.

Other Government Programs

The National Commission for Arid Zones (CONAZA) is making a US$100,000 investment in the construction of livestock infrastructure and work equipment to strengthen the cattle sector in Aguascalientes. Approximately 100 families will benefit from these strategic projects.

Minister of Agriculture and Rural Development, Víctor Villalobos Arámbula, has presided over the first meeting of DICONSA ordinary shareholders. DICONSA is the rural food supply company that falls under the Food Security for Mexico agency (SEGALMEX): During the meeting, it was reported that more than 13 million people were helped in 2019 through 25,500 community stores in 24,500 communities.

Through its Production for Wellbeing program (PpB), SEGALMEX will provide US$7.7 million in incentives to 40,000 corn, sugar cane, beans and other crop producers in Quintana Roo. This includes 16,000 producers from indigenous communities.

SEGALMEX is looking for new mechanisms to avoid the participation of intermediaries in the guaranteed price program for milk. It took this decision after it was reported that the program had failed to individualize deliveries by producer in the states of Chihuahua and Jalisco.  

The National System of Health, Safety and Quality of Agrifoods (SENASICA) is evaluating the effectiveness of the National Animal Health Emergency mechanism (DINESA) after it was actived in September 2019 in light of an increasing threat of swine fever.

Records in Production

In the 2019/2020 autumn-winter cycle the national production of bread wheat reached a record 13.6 percent increase with a total of 1.54 million tons.

Last year, Mexico recorded the highest number of animal protein production in a decade. With 22.6 million tons, livestock production ended the year with a total a value of US$18.6 billion.