US Tariffs, Health Initiatives, and Agribusiness Challenges

US President Donald Trump announced tariffs on agricultural imports starting April 2. Meanwhile, the Vive Saludable, Vive Feliz initiative aims to promote children's health in elementary schools. 

This is the Week in Agribusiness!

Donald Trump to Implement Tariffs on Agricultural Products

US President Donald Trump announced that tariffs on agricultural imports will take effect on April 2, potentially raising food prices for US consumers, with Mexico being a key supplier. While no details on tariff rates or affected products have been disclosed, economists warn of inflationary pressure, especially as staple goods like eggs and chicken have already seen significant price hikes. In response, Mexican President Claudia Sheinbaum emphasized that communication with the US remains positive and assured that Mexico has contingency plans in place to address any trade impacts.

Mexico to Combat Childhood Obesity in Schools

The Mexican government launched the Vive Saludable, Vive Feliz initiative to promote children's health in schools, featuring a national health census starting March 12 and a formal ban on junk food in educational institutions. The census will assess students' health through height, weight, vision, and oral health evaluations, while new regulations on processed food sales in schools will take effect on March 29, 2025. While the private sector has shown mixed reactions, officials stress the initiative's long-term impact on fostering healthier generations.

Chicken Prices Surge in Mexico Amid US Avian Influenza Outbreak

Chicken prices in Mexico have surged due to an avian influenza outbreak in the United States, which has disrupted supply chains and reduced domestic production. INEGI data shows an 18.8% annual increase in chicken prices in Monterrey, with some cuts rising by up to 48% year-over-year. To compensate for supply shortages, Mexico has turned to Brazilian imports, but higher costs and a strong US dollar have further driven up prices.

Alsea to Invest US$6 Billion in Expansion, Digital Innovation in 2025

Alsea plans to invest MX$6 billion (US$287.4 million) in 2025, opening 180 to 220 new locations, fewer than the 275 opened in 2024. The company reported a 6.3% sales increase in 2024, with most of its CAPEX directed toward new stores and renovations, particularly for Starbucks and Domino’s Pizza. For 2025, Alsea expects low double-digit total sales growth, focusing on digital initiatives, customer loyalty programs, and product innovation to drive revenue.

Current Challenges for Insect Farms in Developing Countries

The growing insect farming industry faces significant challenges, including the need for specialized knowledge in entomology, maintaining biosecurity, and ensuring proper environmental conditions, particularly in regions with extreme climates. Limited investment, high production costs, and small-scale operations hinder large-scale viability, while consumer resistance in Western markets and strict regulations foster slow adoption. Despite these obstacles, continued research, innovation, and strategic marketing are essential for insect-based foods to become a mainstream alternative to traditional protein sources.