Water Plan, Food Prices, and Growing Exports

The National Water Plan aims to address drought by modernizing irrigation, reusing water, and strengthening public law. Meanwhile, Mexico renewed the PACIC program, pledging to maintain stable prices on 24 essential products.

This is the Week in Agribusiness!

National Water Plan Targets Drought, Irrigation Modernization

President Sheinbaum announced that the federal government will unveil the National Water Plan next week, focusing on historic investments in irrigation modernization and water management to address scarcity and optimize water use in agriculture. The plan aims to regulate water extraction for agricultural use, repurpose treated wastewater for farming and mining, and strengthen institutions like CONAGUA, while addressing water hoarding and improving infrastructure. 

Mexico Renews PACIC Agreement to Stabilize Basic Goods Prices

The Mexican government renewed its commitment to the PACIC program, with 19 food producers and 11 distributors pledging to maintain the price of a basic basket of 24 essential products at no more than MX$910 (US$44.47) for the next six months. Rogelio Ramírez de la O, Minister of Finance highlighted the importance of the private sector in stabilizing food prices, despite global challenges such as the ongoing war in Ukraine. 

Mango Exports Poised for Growth in the US Market by 2025

The Mexican mango industry continues to dominate the United States market, exporting 80 million boxes in 2024. However, challenges like climate change and rising production costs remain. Despite droughts and climate variability affecting production, growers are optimistic about a 10% to 15% increase in exports for 2025, driven by strong demand and favorable weather. The industry remains focused on North America, with the 2024 season generating US$600 million, while competition from countries like Peru and logistical challenges in Europe pose additional hurdles.

FAO, ICA Partner to Strengthen Cooperatives in Latin America

FAO and the International Cooperative Alliance (ICA) signed a Memorandum of Understanding to strengthen the cooperative model in Latin America and the Caribbean, focusing on resource mobilization, promoting the Model Law on Agri-Food Cooperatives, and expanding knowledge of cooperatives. The partnership, which involves 28,000 cooperatives engaging 6 million people, aims to drive entrepreneurship, economic empowerment, and food security in the region. 

Proposal to Eliminate VAT on Pet Food Moves Forward in Mexico

Mexican lawmakers are considering a proposal to eliminate the Value Added Tax (VAT) on pet food, a move aimed at reducing the financial burden on pet owners, especially those with service animals or family pets. If approved, the proposal could save families up to MX$67,000 annually, helping with the rising costs of pet food, which can average MX$1,500 per month. The initiative, which has gained support from animal welfare groups, also aims to assist animal shelters, which face significant food expenses, potentially saving them up to MX$35,000 a year.