Mexico's Food Waste Crisis; Milk Price Speculation

Annual food waste in Mexico exceeds 22.7Mt, posing economic and environmental challenges for the country. Meanwhile, FEMELECHE reported significant price drops and coordinated speculation by major buyers, affecting milk producers. 

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The Reality of Food Waste in Mexico

Food waste in Mexico exceeds 22.7Mt/y, posing economic challenges and environmental issues such as greenhouse gas emissions (GHG), water wastage, and land depletion, revealed the Latin American Network of Experts Against Food Loss and Waste. The organization highlighted that 32.8% of the national food production is lost each year, with the main sources being pre-commercialization phases and transportation. Specialists emphasized the need to address this issue, revealing that Mexico’s GHG emissions from food waste are equivalent to those produced by 14 million conventional vehicles.

Milk Producers Face Price Speculation: FEMELECHE

Milk producers in Mexico are facing challenges from price speculation by private companies in the food sector, resulting in a significant 14-23% drop in prices, reported the Mexican Federation of Dairy (FEMELECHE). FEMELECHE highlighted that major buyers are coordinating speculation, causing disruptions and threatening the livelihoods of producers, compounded by drought and inadequate government support. The organization stressed the need for authorities to address the situation to prevent a potential increase in imports, risking the country's food self-sufficiency, while pointing out the disparity in support for Mexican producers compared to those in the United States and China.

SADER Projects Steady Growth in Mexico's Agrifood Sector

Mexico expects 4.6% growth in national food production, surpassing 300Mt by the end of 2023, according to the Ministry of Agriculture. Despite drought challenges in northern regions, SADER assured there will be no shortage of white corn for human consumption, attributing increased corn production in southern regions to federal programs like Fertilizers for Well-Being and Sowing Life. The federal government dismissed concerns about a loss of self-sufficiency in white corn, attributing them to political motives, while the National Agricultural Council highlighted ongoing technification efforts to optimize water usage in the agricultural sector.

PepsiCo Reports Sustainable Agricultural Progress in Mexico

PepsiCo showcased advances in its sustainable agriculture programs in Mexico as part of its pep+ strategy, aligning with the United Nations' Sustainable Development Goals (SDG). The company presented its strategy to members of the Ministry of Agriculture, emphasizing key initiatives such as the Agrovita program, benefiting small-scale farmers, and the Agriba Sustentable program, promoting conservation agriculture practices among wheat producers. PepsiCo aims to ensure 100% sustainable corn production by 2030 and highlighted collaborations with farmers to achieve this goal, with Sinaloa producers receiving the first sustainable corn certification in 2023.

Mexico Showcases Agricultural Products in Qatar

Representatives from the Ministry of Agriculture attended the International Horticulture Exhibition in Doha, Qatar, with the goal of promoting Mexican horticultural and fruit products in international markets. The diplomats will engage in bilateral meetings with Qatari officials, visit the Qatar Science and Technology Park, and explore opportunities for collaboration with Qatari agri-food companies. The exhibition, running from Feb. 25 to 29, aims to enhance the visibility of Mexican agro-alimentary products and strengthen trade relations, building on Mexico's agro-alimentary and fisheries trade surplus with Qatar reaching US$6 million in 2022.

Global Consumer Giants Adjust Pricing Strategies

Danone and Nestlé announced plans to moderate price increases in 2024, responding to two years of escalating prices that led consumers to seek more affordable alternatives. Nestlé reported a reduced impact from freight costs despite challenges from shipping disruptions in the Red Sea. Meanwhile, Danone warned that prices may continue to rise due to increasing labor and transportation costs. The packaged goods industry attributes the surge in prices to increased input costs caused by the COVID-19 pandemic and geopolitical events like Russia's invasion of Ukraine.