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News Article

Mexico to Catch on Asia's Agribusiness Industry

By María Fernanda Barría | Wed, 07/14/2021 - 16:05

Government institutions are planning to represent the Mexican Pavilion at Foodex 2022, one of the most important events for the agribusiness industry in the Asia-Pacific region. The event is part of a joint strategy to diversify markets for Mexico's agribusiness and fishery exports.

Foodex 2022 will be held in March 2022 in Chiba, Japan, where more than 50,000 food and beverage buyers from China, South Korea, Singapore, Australia, Vietnam, Malaysia, Indonesia and Japan are expected to attend. The event marks an opportunity for Mexican exporters to take advantage of the benefits achieved in negotiating trade agreements, such as the Mexico-Japan Economic Partnership Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TIPAT).

The Ministry of Agriculture and Rural Development (SADER) and the National Agricultural Council (CNA) highlight the importance of supporting food exporters to achieve a faster economic recovery derived from the pandemic. Víctor Villalobos Arámbula, Minister of SADER, said Foodex represents an opportunity to resume trade activities and take advantage of the opportunities the Asian market offers Mexican growers.  The minister assured that it is essential to support the country's exports to Japan and East Asia. This is why SADER and the CNA have taken actions to benefit the production chains of the agribusiness sector.

SADER reports that agribusiness exports have grown faster than the rest of the economy and have surpassed traditional foreign exchange sources, such as tourism and oil. In the first quarter of 2021, Mexico's agribusiness and fishery exports to Japan totaled MX$8,9 billion (US$447 million), a 7.3 percent increase when compared to the last year's quarter. 

Pork continues to be the driving force behind Mexico's agribusiness exports to Japan, cashing in during the 1Q2021 US$171.1 million, representing a 4.8 percent increase compared to the same period the previous year.

The second most exported staple to Japan was the avocado, with shipments totaling  MX$1,4 billion (US$70.3 million). However, this represents a 1.6 percent decrease during the same period in 2020. As previously reported by MBN, world imports of Mexican avocado have increased 171.97 percent during the last decade, breaking export records in countries like the US, Japan and Canada.

On behalf of CNA's President Juan Cortina Gallardo, the organization's Vice President for Foreign Trade, Humberto Jasso Torres, expressed the organization's commitment to continue with the goal of diversifying markets. He said that great opportunities are on the horizon in the Asian market, especially in Japan, China, South Korea and Singapore and this is why a trade tour is scheduled for 1Q2022. 

Villalobos Arámbula has encouraged producers to participate as exhibitors in this project that will positively impact their growth and profitability, representing an opportunity for the development of the Mexican agribusiness.  SADER reports that Mexico is one of the Top 10 food exporters. Participation in events such as Foodex seeks to consolidate its position and achieve a more significant presence in the world's most dynamic markets.

The data used in this article was sourced from:  
María Fernanda Barría María Fernanda Barría Junior Journalist and Industry Analyst