January Slope Strains Budgets; Organic Market Strengthens

Processed food and basic goods price hikes are intensifying the January slope, straining household budgets. Meanwhile, Mexico continues to strengthen its position as an organic powerhouse through international agreements, certifications, and diverse products.

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Rising Food Prices Impact Purchasing Power in New Year

The "January slope" phenomenon in Mexico, characterized by rising prices and inflation, is being driven by increased costs for processed foods and basic goods, along with tax adjustments and external factors like Donald Trump's return to the US presidency. Companies such as Bimbo, Bachoco, and Lala are cited as contributors to food price hikes, despite government programs like PACIC aimed at stabilizing costs. Additionally, new tariffs announced by Trump could exacerbate inflation in North America, further straining Mexican families' economies through the first quarter of 2025.

Mexico’s Organic Market Thrives

In 2025, Mexico will continue to be a competitive player in the organic market, thanks to strong collaboration between producers, certifying bodies, and government agencies like SENASICA. Key developments include the extension of the Memorandum of Understanding with Canada, which facilitates organic trade, and the recognition of Certimex by the EU, enhancing transparency in the supply chain. With over 48,000 farmers across the country, Mexico remains a global leader in organic coffee, tropical fruit, and wild harvesting, producing a diverse range of certified organic products from coffee to agave.

FAO Reports Decline in Global Food Prices for December

FAO reported a 0.5% decrease in the global food price index for December 2024, driven by a significant drop in sugar prices, which fell by 5.1%. Despite this decline, food prices were still 6.7% higher than in December 2023, with notable year-on-year increases in dairy and meat prices. The 2024 FAO food price index averaged 122.0 points, marking a 2.1% decrease from the previous year, with cereal and sugar prices seeing the most significant drops.

Mexico’s Fisheries and Aquaculture Sectors See Growth in 2024

CONAPESCA reported a positive 2024 balance for Mexico's fisheries and aquaculture sectors, with total production exceeding 2.03Mt, valued at MX$37.59 billion (US$1.8 billion). Aquaculture was led by shrimp, while sardine and anchoveta dominated capture fisheries. Efforts to combat illegal fishing, including the continuation of US shrimp export certification, and enhanced traceability measures were highlighted as key achievements for the year.

Grupo Bimbo Exceeds 2023 Regenerative Agriculture Goal

Grupo Bimbo exceeded its regenerative agriculture target by reaching 170,000ha, surpassing the 150,000ha goal set for 2023. This includes significant increases in wheat and corn production across countries like Mexico, the US, Canada, and France. The company’s regenerative practices have led to improvements in water productivity and reductions in CO2e emissions, aligning with its 2050 sustainability goal to source 100% of key ingredients from regenerative land.