Price Stabilization, Irrigation Boost and Trade Shifts

The federal government signed the National Corn Tortilla Agreement to stabilize and gradually reduce tortilla prices. Meanwhile, CONAGUA will invest MX$217 million in Veracruz to modernize irrigation and support farmers.

This is the Week in Agribusiness!

Mexico Signs National Corn Tortilla Agreement

The Mexican government signed the National Corn Tortilla Agreement to stabilize and gradually reduce tortilla prices by 5% over six months, targeting a 10% reduction by 2030. The initiative promotes direct agreements between corn producers and processors, provides up to MX$500 million in credit for tortilla shops, and includes training programs for youth, while PROFECO will monitor prices and sales practices. However, industry leaders warn that achieving these goals requires full participation from all tortilla shops and stable input costs, highlighting challenges like informal competition and fluctuating gas prices.

Veracruz To Boost Irrigation Through Federal Support

CONAGUA will invest over MX$200 million (US$10.5 million) in Veracruz to upgrade irrigation infrastructure and modernize water use in agriculture, aiming to boost production and address climate challenges. The funds will support nearly 1,900 irrigation units across four districts, benefiting about 20,000 producers, focusing on improving channels, well rehabilitation, and water supply, especially in drought-prone areas. This investment is part of the broader 2024–2030 National Water Plan, which allocates MX$186.567 billion for water projects nationwide, generating tens of thousands of jobs. 

Mexico Eases Ban on Poultry Imports From Brazil

Mexico has lifted most restrictions on poultry imports from Brazil after nearly a month of suspension due to an avian influenza outbreak, keeping limited bans only on plants in Rio Grande do Sul. The decision follows an analysis by Mexican health authorities confirming it is safe to reopen the market under strict animal health safeguards. This move aims to ensure a steady supply of key poultry products like chicken and eggs, critical for Mexico’s food security, while full restrictions will remain until Brazil officially resolves the outbreak.

Mexico’s Agri-Food Exports to US Decline in Early 2025

Mexico’s agri-food exports to the US declined in the first four months of 2025 despite no broad tariffs on the sector, with most top products like beer, berries, tequila, tomatoes, beef, chiles, and sugar showing reduced export volumes. Beer remained the leading export at US\$2.06 billion but dropped 5%, partly due to a new 25% tariff on aluminum cans affecting packaging. The decline reflects ongoing challenges from trade measures and non-tariff barriers, such as phytosanitary standards, impacting Mexican exporters.

Trump Considers Action to Shield Undocumented Farm Workers

US President Donald Trump announced plans to issue an executive order protecting undocumented immigrants working in agriculture and hospitality from deportation, recognizing their vital economic contributions. He highlighted the negative impact of deportations on farmers and called for a common-sense approach to immigration enforcement, amid protests against rising deportation raids. While industry groups support relief to prevent labor shortages, the administration acknowledges that lasting solutions will require Congressional legislation.