20 Negocios

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mexican agroindustry nurturing the world

Cover feature mexican agroindustry speCiaL feature mexican shoe industry

Mexico is considered among the countries with the largest number of flora and fauna species in the world. The same reasons for which Mexico is a megadiverse country, have favored the development of a strong agribusiness sector. Thus, agriculture has historically been a key-determining factor in Mexicos economy and health. The country has a territory of over 107.5 million acres of farmland surface and possesses a great climate diversity that allows harvesting agro-food products throughout the year.
griculture employs approximately 10% of Mexican population. With its land area, climate diversity and geographic proximity to one of the largest markets in the world (the US), Mexico has a strategic position in terms of export of food. Currently, the country is the 13th largest exporter of agrofood products worldwide, with more than 800 different products in the international markets and the first food supplier for the North American market. In 2010, Mexicos agro-food exports had a total value of over 16.9 billion usd. The country is the worlds leading exporter of avocado, papaya, mango, processed peppers and organic coffee, and its the second largest exporter of fresh tomato, watermelon, beer, lemon, chewing gum and orange pulp. The US is Mexicos largest agricultural market. Nearly 80% of Mexicos agricultural exports go that country. Since North American Free Trade Agreement (NAFTA) was implemented in 1994, agricultural trade between the US and Mexico has risen dramatically. Mexicos agricultural exports to the US have expanded by nearly 9% per year, growing twice as fast as they did before NAFTA. Roughly two-thirds of US agricultural imports from Mexico consist of beer, vegetables and fruit. These imports are closely tied to Mexicos historical expertise in producing alcoholic beverages and a wide range of fruits and vegetables, along with a favorable climate whose growing season largely complements that of the US. Mexican producers comply with the most important sanitary regulations in the world, like the BPA (Buenas Prcticas Agrcolas), Hazard

Analysis and Critical Control Points and those from the US Food and Drug Administration (FDA), among others. This guarantees the quality and safety of Mexican agricultural products. Besides crop production, Mexico is one of the ten major meat producers worldwide. The countrys meat exports surpassed 670 million usd during 2010, being Japan, the US and Korea its main markets.

anCient Wisdom
Mexico is one of the worlds largest producers of organic agricultural products. This sector is rooted in the rescue of ancestral farming models and the growing number of organic farmers, companies, certification agencies and farmland show that competitiveness and social development is flourishing. Although organic agriculture in Mexico has a long history and 30 years ago crops were already beginning to be cultivated with more modern production techniques, the sector has grown especially since 1996. Since that year, the sector has seen a 32.7% average annual growth rate in terms of farmland, 25.2% more farmers, 28.7% more jobs and 28.8% in increased foreign currency earned through export sales. Mexico is one of the worlds leading exporters of agricultural organic products. Approximately 90% of Mexicos organic production is exported. The Mexican products with the most international demand are coffee, avocado and cocoa, but the country also produces organic agave syrup and honey, vanilla, sesame seeds and hibiscus plants.

neW deveLopments
Biotechnology has transformed the way ag-

riculture is practiced around the world and Mexican researchers are in the forefront of this change. New crops resistant to insects and other parasites, are continually being discovered, as well as new plants that can better use soil nutrients. Today, Mexico is one of the most important nations in the world using genetic improvement and hybridization and it has become one of the most advanced nations in Latin America in matters of biotechnology. Some of the products that have been developed in Mexico are cotton (Gossypium hirsutum) that resists moths, tomato (Lycopersicum esculentum) with delayed ripeness and potato (Solanum tuberous) that resists the potato bug and virus. Other discoveries have also influenced the way crops like soy and rice are grown, and new efforts are undergoing that will affect other high value crops like avocado. n

22 Negocios

inFOGRaPhic oldemar

Mexico Nurturing the World

Production rates of main Mexican exported crops in 2010

Cultivated Surface (hectares)

Production (tons)

13,239
Asparagus

134,322 74,659
Avocado

78,130 1107,135
Banana

2103,361

16,391
Berries

781,015 303,618
Coffee cherry

16,518 477,366
Cucumber

1332,263

Blueberry, strawberry, raspberry and blackberry

The ripened fruits of the coffee shrubs

4,913 47,429
Garlic Guava

22,576 305,227
Grapes

27,683 307,146

Main agricultural exports

Million USD, from January to July 2011

1,430.9
Tomato

528.7
Avocado

405.0
Coffee (raw grain)

296.5

Melon, watermelon and papaya

216.4
Garlic and onion

ocado Av

Berries

Lemon

US

469.67 70.60 40.27 9.92 1.89 0.96 0.64 0.42 US Canada Japan Brazil 237.30 3.52 0.35 0.34

US Canada Japan The Netherlands Spain France Germany Switzerland

98.36 21.50 8.79 2.62 1.08 1.02 0.25 0.20

Exports by product and country

Million USD, from January to July 2011

Japan Canada Costa Rica Honduras Hong Kong Guatemala The Netherlands

Cover feature mexican agroindustry

18,520
Grapefruit

153,425 400,933
Lemon

183,108 1891,403
Mango

1632,649

45,126 1266,164
Onion Orange

339,389 4051,631
Papaya

16,227 616,215

31,871 701,740
Pineapple Tomato

54,510 2277,791

47,338 1036,794
Watermelon

160.6
Cucumber

152.9
Citrus fruits

142.9
Mango

140.4
Grapes

114.5
Strawberry (fresh)

42.1
Banana

Mango

Melon

a Ban na

apefruit Gr

US Canada Japan The Netherlands Spain France Germany

98.36 21.50 8.79 2.62 1.08 1.02 0.25 US Japan Hong Kong 15.89 11.13 0.60 US Spain Japan 4.32 0.21 0.13 US France Russia UK 1.00 0.36 0.24 0.10

Source: Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food - Servicio de Informacin Agroalimentaria y Pesquera (SIAP).