Mexico’s 2022 Agribusiness Expectations

Mexico’s Ministry of Agriculture and Rural Development (SADER) forecasted a positive 2022 for the agricultural sector thanks to a production increase following the rainy season. The ministry also implemented new measures for the sector’s sustainable growth.

The country’s dependence on the fishing and aquaculture sector keeps growing due to both nutritional and economic needs. In 2021, it generated 1.9 million tons of produce, a figure 5.3 percent higher than the previous year and enough to cover about 80 percent of the requirements for national human consumption. In addition, SADER points to the great variety of coastal and marine systems in the country, which could lead to further growth during 2022. Most of the sector’s products went to the US, with 53 percent of total exports, followed by China with 13 percent, Spain with 6.0 percent and Japan with 5.0 percent. 

Overall, agri-food production is expected to reach new levels during 2022 following stronger efforts in the transparent management of resources, direct delivery of support, incentives to small and medium-scale producers and accountability. As a result of these priority programs, which according to SADER take up to 70 percent of its budget, Mexico’s government authorized an increase in the guarantee prices for basic grains and milk. It also committed to extend the delivery of free fertilizers to five more states in 2022.

There are, however, numerous challenges. “We face new challenges such as the mitigation and adaptation of agriculture to the effects of climate change and working with an inclusive scheme that recognizes that there are two agricultures: commercial and self-consumption,” said the Minister of Agriculture and Rural Development, Víctor Villalobos Arámbula. 

As FAO warns, the world is facing a triple crisis caused by a loss of biodiversity, climate change and pollution. This phenomenon is also affecting Mexican corn production, showing that a large part of the loss of biodiversity is due to the way the country manages agriculture and food systems. Last year, FAO called for the change of this type of management to give greater importance to sustainable practices within the field and avoid the deterioration of Mexican production, as previously mentioned in MBN.