Food Inflation, AgTech Advances, and Trade Highlights

Mexico recorded one of the highest food inflation rates among OECD countries. Meanwhile, Satellite-enabled IoT is transforming agriculture by improving productivity and sustainability, especially in remote areas. 

This is the Week in Agribusiness!

Mexico Ranks Among Top OECD Countries for Food Inflation

Mexico posted one of the 10 highest food inflation rates among OECD countries in May, with a 5.1% increase driven by climate-related supply shocks and global market disruptions. Rising prices of fruits, vegetables, and meat, have been exacerbated by extreme weather and avian flu outbreaks. In response, the Sheinbaum administration is working with the private sector to expand the PACIC program to include more meat products, aiming to protect vulnerable households from further erosion of purchasing power.

Satellite IoT Drives Digital Agriculture in Mexico

Satellite-enabled IoT solutions are revolutionizing agriculture in Latin America, especially in remote areas, by enabling real-time data collection and smarter, more sustainable farming practices. In Mexico, institutions like IPN and INIFAP are leading efforts to integrate technologies such as AI, drones, and sensors through initiatives like Agriculture 5.0 and precision farming trials. While geographic and connectivity challenges persist, Low Earth Orbit satellite IoT offers a scalable solution, with the Mexican market projected to more than double by 2030 as adoption accelerates across agriculture and other sectors.

Mexico’s Front Labeling Recognized as Global Best Practice

Mexico’s front-of-pack warning labeling system has improved consumer decision-making and influenced dietary habits, with usage rising to 79% among adults and 85% among parents by 2025. Experts from PAHO and WHO praised the system’s alignment with the PAHO nutrient profile, noting that it regulates over 90% of ultra-processed foods and inspires international adoption. While its full impact on public health will take five to 10 years to materialize, early signs show reduced calorie intake and sugary drink consumption, prompting Mexico’s recognition by the UN for its leadership in food labeling reform.

Del Monte Foods Files for Bankruptcy Protection, Pursues Sale

Del Monte Foods has filed for voluntary Chapter 11 bankruptcy to pursue a court-supervised sale aimed at restructuring its balance sheet and securing long-term stability, supported by a US$912.5 million debtor-in-possession financing package. The company intends to maintain operations without disruption during the process, while non-US subsidiaries remain unaffected. Meanwhile, Fresh Del Monte Produce clarified it operates independently and is not involved in the bankruptcy or financial restructuring of Del Monte Foods.

Japan Endorses Safety Standards of Mexican Avocado, Meat Exports

Japan’s Ministry of Health, Labour, and Welfare endorsed Mexico’s avocado and meat products following a thorough technical audit of facilities in Michoacan, San Luis Potosi, and Jalisco that confirmed compliance with Japanese safety and quality standards. Auditors praised Mexico’s hygienic controls and coordination with SENASICA, requiring no corrective actions, ensuring continued trade between the two countries. This approval supports Mexico’s key role as a supplier of meat and avocado in the Japanese market, with 89 TIF-certified plants authorized to export to Japan.