Sugarcane, Mezcal, Fertilizers: The Week in Agribusiness

Despite setbacks in the 2023-2024 harvest, Mexico’s sugarcane sector continues to be a major contributor to the nation’s economy. Meanwhile, Donald Trump’s 25% tariff increase on Mexican products could severely impact mezcal exports.

This is the Week in Agribusiness!

Sugarcane Industry Remains Key Economic Driver Despite Challenges

The Ministry of Agriculture and Rural Development (SADER) recognized Mexico's sugarcane sector for its significant contribution to food sovereignty and rural development, with Julio Berdagué highlighting its increased yields and profitability. Despite challenges like drought and fertilizer shortages, the sector remains a key economic driver, generating up to MX$50 billion annually and providing over 500,000 direct jobs. Veracruz, the leading sugarcane-producing state, accounts for 40% of Mexico's sugar production, contributing to the country’s position as the eighth-largest sugar producer globally.

Mezcal Exports at Risk Amid Proposed Tariffs

Donald Trump’s proposed 25% tariff increase on Mexican products could severely impact mezcal exports, particularly affecting small producers who may struggle to compete in the US market. With over 265,000 Mexicans dependent on the industry, a significant drop in sales could threaten livelihoods, especially as mezcal's artisanal production remains highly demanded in the US. 

Mexico’s Bean Production Rebounds Amid Drought Challenges

Mexico's bean production is expected to rise by 18% in 2024, reaching 856,000t, after a significant decline in 2023 due to drought conditions. While states like Sinaloa are projected to surpass internal demand, commercialization challenges persist, with intermediaries affecting prices. In response to the ongoing shortage and rising imports, President Claudia Sheinbaum has announced a plan to boost production by 300,000t and strengthen domestic food sovereignty.

Fertilizers for Well-Being is Now a Constitutional Right

The Mexican government has relaunched the Fertilizers for Well-Being program for 2025, guaranteeing free fertilizers for over 2 million small-scale producers as a constitutional right. The program, which will distribute 1Mt of fertilizer across 3.3 million ha, aims to boost agricultural productivity and reinforce food sovereignty, with a focus on women, indigenous communities, and small producers. Additionally, the initiative is expected to create thousands of jobs and support local economies, with PEMEX contributing to national fertilizer production.

Governance, Resilience: Keys to Food Systems Transformation

A groundbreaking study published in Nature Food highlights both progress and setbacks in achieving sustainable food systems by 2030. The research, led by Columbia and Cornell Universities, FAO, and GAIN, tracks 50 indicators across five categories and finds progress in areas like water access and vegetable availability, while challenges such as food price volatility and declining government accountability persist. The report calls for urgent reforms, emphasizing governance and resilience as key drivers for transforming food systems and accelerating progress toward the Sustainable Development Goals.