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Weekly Roundups

Mexican Beer Sector Worried About the Future

By Jan Hogewoning | Fri, 05/08/2020 - 09:38

The Mexican beer sector, a giant exporter, is losing big with revenues down by hundreds of millions. Some worry that the pandemic could change the country’s position in the global beer market forever. The government has rolled out its loan program to help businesses through the crisis. The mechanism is accessible to both formal and informal commerce. US President Donald Trump is using the COVID-19 situation as another argument to build the wall, even though the US is the current epicenter of the pandemic.

 

Want to know more? Here’s the Week in Agribusiness!

 

COVID-19

The Community of Latin American and Caribbean States (CELAC) has made a strategic alliance with the Economic Commission for Latin America and the Caribbean (ECLAC) and the Food and Agriculture Organization (FAO) to strengthen the regional strategy to limit the impact of COVID-19 on food supply chains.

SADER and the National Water Commission (CONAGUA) are increasing collaboration with the Mexican Congress to work on more mechanisms to ensure food security and water supply during the current contingency and beyond.

The Mexican government has initiated its loan scheme for small businesses, including restaurants, called Bajo Palabra. The program allows both formal and informal businesses to receive a loan to support them during this pandemic.

One month after the Mexican beer industry halted its production and distribution operations due to the COVID-19 health crisis, industry representatives have been expressing concerns that export commitments cannot be met. It is estimated that the Mexican beer sector is current losing US$404 million per month.

US multinational Cargill is providing food supplies to support malnourished Mexican communities and feed livestock during this contingency.

An array of Latin stars, including March Anthony, Sofia Vergara, Tigres del Norte and Luis Fonsi, gathered on Tuesday night through an online show to raise awareness about the work of US farmworkers and launched a fundraising campaign for them.

Farmers around the world are reinventing the supply chain to reach consumers.

US Republican Congressman Ted Yoho of Florida sent a letter this week to Trump urging him to stop importing food products from Mexico, Central America and South America. He argues that these hard times in the US agrosector also require strong measures. Ted Yoho sits on the US Agriculture Committee.

This Monday, Trump sent out a tweet stating that Mexico has major COVID-19 problems and praised his government’s work to built a wall on the border.

 

Fishery

SADER has issued a temporary ban of two years on chocolate clam fishing in the lagoon system of Sinaloa with the objective to allow the population to recover.

To maintain a sustainable population, SADER has also announced a ban on shrimp fishing in the Gulf of Mexico and Caribbean Sea, from Tamaulipas to the Yucatan Peninsula. The states of Tamaulipas and Veracruz contribute 74 percent of the total shrimp production registered in the Gulf of Mexico.

 

Livestock

In the January-March 2020 period, Mexican livestock producers sold 343,588 animals in the US, consisting of 275,349 calves and 68,239 heifers. So far, Mexican producers have exported 788,239 animals in the 2019/2020 cycle. In the last week of March, 5,000 more animals were exported in comparison with the same week last year.

SADER is estimating that 1.7 million tons of pork meat will be produced in 2020. The Agri-food and Fisheries Information Service (SIAP) is predicting an export level of 212,000 tons, which would be a 20.5 percent increase compared to last year.

 

Science and Technology

INIFAP is introducing a comprehensive scheme to control the cotton whitefly. The objective is to demonstrate to producers that pesticide application can be avoided if the right presence of beneficiary insects is there.

The College of Postgraduates in Agricultural Sciences is developing a method that can boost huitlacoche production. The method considers various stages in the production process.

 

Other Government Actions

A joint pilot program between Mexican and US authorities has inspected more than 36,000 tons of food. The average time food takes to cross the border was also reduced by an average of 3.5 hours, SADER reports.

The Mexican Food Security Agency (SEGALMEX) announced that 28 distribution centers will offer loans for bean planting. The agency will offer beans from the Negro San Luis variety in Zacatecas and San Luis Potosi, and Negro San Luis and Pinto Saltillo in Durango.

Flower and ornamental growers are demanding that they be allowed to harvest on Mother’s Day this week in order to protect their operations.

 

The data used in this article was sourced from:  
SADER, Reuters, Agro Noticias, Info Rural, Florida Daily
Photo by:   Wikimedia Commons
Jan Hogewoning Jan Hogewoning Journalist and Industry Analyst