Trade Barriers, Cattle Export Plans, and Agriculture Innovation

IFAD warns that US trade barriers and tariff uncertainty are fueling food inflation in Mexico. Meanwhile, Mexico and the United States are coordinating a medium-term plan to resume cattle exports. 

This is the Week in Agribusiness!

IFAD Links Trade Barriers to Rising Food Inflation in Mexico

The UN’s International Fund for Agricultural Development (IFAD) warns that tariff uncertainty and trade barriers, including new US tariffs on Mexican tomatoes, are contributing to food inflation in Mexico and threatening rural economies. IFAD President Álvaro Lario emphasized the importance of investing in small farmers and rural infrastructure to boost food sovereignty and integrate value chains.

Mexico, US Coordinate Efforts to Resume Cattle Exports

Mexico and the United States are developing a medium-term plan to resume cattle exports after the border closure triggered by a New World screwworm outbreak. Both governments agreed on immediate and long-term containment strategies, while companies like SuKarne took voluntary measures to support sanitary controls. Mexican authorities criticized the broad US restrictions, noting that affected areas are far from export regions, and emphasized their adherence to scientific protocols to control the outbreak.

Mexico Cuts Powdered Milk Imports to Boost Local Supply

Mexico plans to eliminate powdered milk imports from the United States as part of President Sheinbaum’s Milk Self-Sufficiency Plan, which targets a 25% production increase by 2030. The government is boosting local purchases through the Milk for Well-Being program and investing in new pasteurization and drying plants in Campeche and Michoacan. While the initiative aims to support over 5,000 producers, experts caution that structural challenges and unsuitable land conditions may hinder full self-sufficiency.

Biotech Redefining Sustainability and Investment in Agriculture

Biotech is reshaping agriculture in Latin America by enabling healthier, more resilient, and more profitable farming through microbial innovations and natural bio-inputs. Mexican companies like Vexxel and Alibio, along with Argentina’s Puna.bio, are leading this transformation by delivering proven field results under tough conditions, backed by significant global investment.

US Beef Prices Hit Record Highs Amid Supply Challenges

Beef prices in the United States hit record highs in 2025 due to a historic cattle herd reduction, prolonged droughts, and rising feed costs. Additional pressure came from suspended cattle imports from Mexico and new tariffs on Brazilian beef, tightening lean meat supply. Despite these challenges, domestic demand remains strong, prompting retailers like Walmart to vertically integrate operations while experts warn that price relief is unlikely before herd recovery, which takes at least two years.