PROFECO Reviews the Price of the Basic Food Basket

This week, aquaculture took the spotlight thanks to new investment opportunities in Mexico brought about by the country’s characteristics and free trade agreements (FTA). Meanwhile, the UN Food and Agriculture Organization (FAO) emphasized the importance of nuclear technology in agricultural development and Mexico’s Tax Administration Service (SAT) worked to encourage formality in small markets. Finally, after the first two months of the implementation of the Package Against Inflation and Deficiency, the Federal Consumer Protection Agency (PROFECO) compared the costs of the basic basket at several supermarkets. 

Interested in more? Here are the week’s major headlines in Agribusiness and Food!

Seeking Opportunities in the Global Aquaculture Industry.

Despite the current economic unpredictability, 1Q22 proved to be among the most promising periods for the global seafood industry, said Ross Gordon, CEO, Aquaculture Advisory. Mexico’s position on the global stage has also become increasingly competitive. “Mexico has achieved this privileged position thanks to a unique mix of characteristics that facilitate access to global markets through a hefty portfolio of free trade agreements, totaling 13 FTAs with over 50 countries, according to the latest figures from the International Trade Administration, opening up a unique window of opportunity for Mexico-based companies to enter key global seafood markets with competitive prices without having to cut away too aggressively at margins,” said Gordon. Despite the uncertain global economic outlook, a new chapter is opening up in the history of Mexico’s economic development and the aquaculture industry.

Nuclear Technology for More Resilient Agriculture

During a symposium to celebrate the 60-year collaboration between FAO and the International Atomic Energy Agency (IAEA), QU Dongyu, Director General, FAO, highlighted this collaboration’s contribution to global food security and sustainable agricultural development. QU emphasized that the work of the symposium helped advance capabilities to respond to the effects of climate change and biodiversity loss. “Isotope and nuclear technologies generate valuable evidence on soil and water management to develop sustainable solutions to adapt agriculture to climate change, reduce and even sequester greenhouse gas emissions, and increase fertilizer use efficiency,” said QU.

SAT to Formalize “Tianguis” and Street Vendors

In response to the growing rate of informality in Mexico, the SAT agreed to visit street markets and “tianguis” to present the advantages of the formalization regime. “We must increasingly encourage formality as the only way for Mexico to grow. We cannot allow for only a few Mexicans to sustain our country’s tax system,” said Héctor Tejada Shaar, President, Confederation of National Chambers of Commerce, Services and Tourism. The labor informality rate reached 55.8 percent of the employed population in June, 0.5 percentage points higher than in the same period of 2021, according to the latest data from the National Institute of Statistics and Geography (INEGI). Informality promotes low wages, short labor stability, the vulnerability of labor rights and practically no contribution to the tax system, according to SAT. 

PROFECO Reviews Costs of Basic Food Basket at Supermarkets

Two months after the implementation of the Package Against Inflation and Deficiency (PACIC), PROFECO reviewed the different price ranges of supermarket chains. Ricardo Sheffield, Consumer Ombudsman, explained that since the anti-inflation agreement went into effect, the basic food basket at HEB and La Comer supermarket chains has been priced at MX$1,310.14 (US$64) and MX$1,288.44 (US$62), respectively. According to PROFECO, the central supply centers continue to be the cheapest option for acquiring the 24 products of the basic food basket, with a sustained price of MX$1,054.22 (US$51).