Mexican Agriculture Expectations Rise

PepsiCo announced its new worldwide program, called Positive Agriculture, to implement regenerative agricultural practices on 2.8 million ha, equivalent to its entire agrarian footprint. The program plans to benefit 920 banana, cocoa and palm oil producers and impact the lives of approximately 37,600 people, 50 percent of them women. The company aims to reduce at least 3 million tons of greenhouse gas emissions by 2030, improve people’s workflow in its agricultural supply chain and sustainably obtain key ingredients for production. The program has shown extraordinary results with two pilot projects: Bimbo Sustainable Wheat and Bimbo Sustainable Maize. In addition, the company has allied with strategic partners, such as Cargill. “Any plan to address the urgent challenges facing the global food system must take into account agriculture, the source of food for billions of people and tackle climate change and inequality,” stated Ramón Laguarta, President and CEO of PepsiCo.

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

• The Minister of Agriculture and Rural Development, Víctor Manuel Villalobos Arámbula, presented the Food Expectations 2121 report, which states that since the pandemic started, the sector grew 2 percent while the overall economy fell by 9.8 percent. Mexico turned into a leading food producer globally with about 290 million tons of produce. During the presentation, he also mentioned that the agri-food sector has become essential for the country’s economic recovery. In Mexico, the agri-food sector has continued to advance and grow despite the global economic slowdown, reduced international trade, risk aversion and sanitary measures. Agribusiness has also been responsible for employing 7 million people. 

• Droughts in Mexico are becoming more frequent due to climate change. Their impact in the agricultural sector also represents a new challenge for the transition to clean energy in Mexico. The Mexican government has placed most of its plans and bets on hydroelectric energy, mostly owned by the CFE. President Andrés Manuel López Obrador has also stated that the country transition to clean energy must revolve around hydroelectric energy. However, Mexico is going through a drought, mainly caused by a decrease in rainfall and, with this, the country’s water resources have also fallen, according to Inforural. In addition, the main body of water that feeds the center of the country is currently at 46.2 percent of its capacity. Hydroelectric plants, however, have increased their production by over 80 percent, in some cases more than 100 percent, over the same period last year, according to the National Center for Energy Control (Cenace). The problem is that the water that is used to generate electricity cannot be used later; it is water considered lost.

• For the first time, Mexico has become the world’s largest strawberry exporter as of 2020. Overall, berry production in the country has increased. This production increase has boosted labor demand and the agriculture sector has developed despite de pandemic. In an effort to satisfy demand, the berry industry has created thousands of employment sources and transformed the landscape of many communities in the country. “Berry crops cover around 50 thousand ha, generating approximately 400,000 jobs, which abide by all regulations and benefits determined by the Federal Labor Law. One of the guidelines we have worked on very much is social responsibility because it is not only a question of making it a profitable industry, but the industry must also be sustainable in order to the commitment to the well-being of the communities,” said Juan José Flores García, Director of the National Association of Berry Exporters