Livestock Expansion, Sugar Policy and Trade Tensions

Mexico’s livestock sector continues expanding, even as producers face sustainability challenges and deforestation concerns. Meanwhile, president Claudia Sheinbaum urged The Coca-Cola Company to increase the use of Mexican cane sugar in soft drink production.

This is the Week in Agribusiness and Food!

Livestock Sector Grows Amid Challenges

Mexico’s livestock sector continues expanding and now supplies 37% of the animal protein consumed by households, but producers face growing challenges related to sustainability, animal health and trade disruptions. The cattle screwworm outbreak has halted live cattle exports to the US, previously worth US$1.5 billion, forcing more than 1 million animals into domestic processing and reshaping supply dynamics in the beef industry. Authorities and industry groups are now focused on strengthening sanitary controls, addressing deforestation linked to ranching and modernizing the livestock value chain to ensure long-term competitiveness and food security.

Sheinbaum Urges Coca-Cola to Increase Use of Mexican Cane Sugar

President Claudia Sheinbaum urged The Coca-Cola Company to increase the use of Mexican cane sugar in soft drinks instead of imported fructose syrup, aiming to support domestic sugar producers amid falling prices and rising sweetener imports. The proposal reflects broader efforts to strengthen national agricultural supply chains while the beverage industry adjusts to higher excise taxes, regulatory pressures and shifting consumer preferences toward lower-sugar products. The discussion also addressed sustainability issues such as water management and recycling, as Coca-Cola prepares a US$6 billion investment in Mexico.

Mexico Expands Corn Support Amid Record Imports

Mexico’s Ministry of Agriculture is distributing MX$1.1 billion in payments to white corn producers under a guaranteed price scheme while extending support to yellow corn farmers and coordinating with major buyers such as Gruma and Minsa to stabilize domestic prices. The measures aim to counteract market pressure caused by record corn imports, mainly from the United States, which have depressed local prices and strained Mexico’s grain supply chain. Alongside subsidies, the government is promoting agroecological programs and technical training to raise productivity, lower production costs and strengthen rural development.

Mexico Urges Science-Based Trade Rules in USMCA Review

Mexico will advocate for science-based decision-making during the upcoming review of United States–Mexico–Canada Agreement (USMCA), according to Julio Berdegué, Minister of Agriculture. He criticized recent measures by the United States affecting Mexican agricultural exports, including tomatoes, cattle and potentially strawberries, arguing they lack scientific or technical justification. Despite these disputes, Berdegué said regional agricultural integration remains broadly beneficial, while Mexico seeks to strengthen infrastructure, value-added exports and labor conditions ahead of the trade review.

Mexico Inflation Rises to 4.02% as Food Prices Increase

Consumer inflation in Mexico accelerated to 4.02% annually in February, surpassing the target range of Bank of Mexico after seven months within it, largely driven by rising food and service prices. Data from INEGI show that staple foods and dining-related services were among the main contributors, reflecting continued volatility in agricultural prices. Global pressures also played a role, as the Food and Agriculture Organization reported renewed increases in international food prices, which could influence Mexico’s inflation outlook and monetary policy decisions in the coming months.