Rising Prices and Drought Influence Agribusiness

Agribusiness in Mexico is still influenced by regulations and production cost increases. The Mexican Association of the Coffee Production Chain called on President López Obrador to regulate prices. In the meantime, goods such as corn and animal proteins suffered an increase in price, influencing cattle activities, particularly in the Bajio area. Guanajuato, one of the country's most fertile soils, continues to experience a severe drought.

Do not miss our expert contributions from Director General Latin America North at Syngenta Agro, and the Vice President of the Honorable Board of Directors of Unión de Crédito del Soconusco.

This is the Week in Agribusiness!

Price Regulation to Save Mexican Coffee?

The Mexican Association of the Coffee Production Chain (AMECAFÉ) has asked President López Obrador to regulate prices to improve the living conditions of producers. “The organization wants prices to be regulated in a way that allows producers to recover production costs. Everyone has the right to benefit from a small profit that allows them to live,” said Luis Herrera, Director of AMECAFÉ.

Crop Protection: Molecules, Regulations, Technology

"As leaders in the research and development industry, we are entirely engaged in reducing the impact of agriculture on the environment while increasing yields," writes Javier Valdés, Director General Latin America North at Synegenta Agro, on an op-ed that focuses on how the crop niche continues to evolve.

Tapachula: Witness to the Storm, Tranquility of Changes in Mexico

Alberto Pineda, Vice President of the Honorable Board of Directors of Unión de Crédito del Soconusco, details the experience of one of Mexico's southern cities, Tapachula, addressing how agribusiness has contributed to its development.

Severe Drought in Guanajuato

On average, damns in Guanajuato are at an average of 56 percent of their regular capacity, according to the National System on Water Information. The state has eight main damns, of which only Presa Solis is at 80 percent of its capacity, while the others are below 40 percent. More than 400,000 people, as well as fields, are at risk.

Price Increases Influence Agribusiness in Queretaro

The rise in corn prices since late 2020 continues to impact agricultural and cattle production, increasing costs between 30 and 35 percent which will eventually be reflected in final product prices. Corn cost alone has increased 44 percent since September 2020. Industry leaders believe a rise in prices is driven by an increase in China's demand for corn.

Soriana Opens Official Store in Mercado Libre

Soriana, Walmart's direct competitor in Mexico, opened its online marketplace in Mercado Libre. By the end of the year, all departments apart from food will be available for customers online. With this strategy, the company aims to double its digital sales.