This Year, Our Country Set to Become Ninth Largest Global Agri-Food Producer

The annual report Agri-Food Perspectives 2024 predicts that by the year 2024, Mexico will have made significant strides in the agri-food sector. The report suggests that Mexico will move up in the rankings to become the ninth largest agri-food producer globally. In addition to this, Mexico is set to climb two positions to secure the seventh spot among the largest food exporters globally.

The Agricultural Markets Consulting Group prepares this report annually and has estimated that Mexico will produce a total of 113.5 million tons of agri-food products this year. This will represent an annual growth rate of 1.7 percent, pushing Canada down to the tenth position with its production of 109.5 million tons.

It’s projected that China will maintain its dominance in the sector, producing 1,449 million tons of agri-food products. Other major producers are expected to be India with 829.9 million tons, the United States with 817 million tons, the European Union with 664 million tons, Brazil with 463.3 million tons, Russia with 248.6 million tons, Argentina with 168.1 million tons, and Ukraine with 125.3 million tons.

The agri-food sector encompasses a wide range of products, including grains, oilseeds, agro-industrial products (like beer, tequila, and chocolate), fruits, vegetables, forage, and animal proteins.

While Mexico is projected to make significant advancements in the global agri-food sector this year, there is an anticipated decline in its production. This decline is predicted to bring the total production down from 289.9 million tons in 2023 to 287.8 million in 2024.

The decrease is expected to be a result of reduced production in the grains and oilseeds segments, specifically due to a projected 6.6 percent decrease in corn production.

Official data from 2023 shows that Mexico produced 26 million 720 thousand tons of corn. However, according to estimates by the Agricultural Markets Consulting Group, this figure is expected to drop to 24 million 950 thousand tons due to factors such as droughts and a decrease in harvested area.

This decrease in domestic corn production is projected to increase corn imports, which hit a record high in 2023. The imports are expected to increase by 6.3 percent to reach 20 million 990 thousand tons.

In terms of the value of Mexican food products, the report predicts a marginal increase of 1.6 percent in 2024, bringing the total value to one trillion 772 billion pesos. The report also predicts a 1.8 percent increase in the population’s consumption of these products, reaching 317 million tons.

Despite these advances, the report highlights that the Mexican countryside continues to face significant challenges. About 49 percent of rural communities are dealing with extreme poverty, and 29 percent of producers are over the age of 65.

One crucial challenge is increasing the food self-sufficiency indicator for grains, which currently stands at 47 percent. This means that more than half of the grain consumed in Mexico is imported.

Other challenges that need to be addressed include the need for more agricultural and catastrophic insurance programs to mitigate the impacts of climate change, issues in the supply and distribution chain such as extortion and theft, geopolitical tensions, and the need for more investment in water infrastructure, maintenance, and modern irrigation systems with cutting-edge technology.