Agriculture
From The Report: Mexico 2014
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For the past decade the agriculture sector has grown marginally – at an annual average rate of 0.9% – as the rest of the economy continues to industrialise. Its contribution to national GDP was estimated at 3% in 2013, down from 3.4% the previous year. The prevalence of small-scale farmers, limited financing options and widespread rural poverty are some of the factors behind the slow pace of expansion. In the past three years adverse climatic conditions have also affected the sector. While some segments of the Mexican agricultural sector, such as fruits and vegetables, have benefitted from the North American Free Trade Agreement (NAFTA) since 1994, others, namely grains, have been adversely affected by increased competition with highly subsidised and efficient US producers. Efforts to diversify export markets, coupled with production-oriented policies and an agrarian reform to be announced in 2014, could bring some much-needed dynamism to the sector. This chapter includes an interview with Luis Rebollar González, President and General Manager, DuPont México, Central America & Caribbean.

Articles from this Chapter

Overview

Fertile ground: While challenges remain, the sector may be set to enter a new period of dynamism
OBG
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For the past decade the agriculture sector has grown marginally, as the rest of the economy continues to industrialise. The slow pace of expansion has been due to a number of structural inefficiencies which limit productivity growth, in particular the prevalence of small-scale farmers, limited financing options and widespread rural poverty. In the past three years adverse climatic conditions have also affected the sector. The entry into effect of the North American Free Trade Agreement (NAFTA) in 1994 contributed significantly to the integration of the US, Mexican and Canadian markets. Some segments of the Mexican sector, such as fruits and…

Interview

OBG talks to Luis Rebollar González, President and General Manager, DuPont México, Central America & Caribbean
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Interview:Luis Rebollar González Given that agriculture employs 12.7% of the population yet contributes just 3% to GDP, in what way can productivity be improved? LUIS REBOLLAR GONZALEZ: The way in which the countryside is structured dates back to the time of the Mexican Revolution, when land was divided and given in tenure to small communities. The main challenge to the agriculture sector at present is to increase productivity, which has lagged behind ever since that period of our history.…

Analysis

Open arms: Finding new markets for exports
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Although it has a number of free trade agreements (FTAs), Mexico’s diversification of export markets has been slow. In 2013, five countries – the US, Japan, Canada, Venezuela and Guatemala – accounted for 84.7% of Mexico’s agrifood exports. In the past few years, diversification efforts have for the most part been directed at penetrating markets in Asia. Mexico has attempted to carve out a market for its meat and fruit and vegetable exports in the Chinese and South Korean markets, while increasing exports to Japan, its key partner in the region. The Trans-Pacific Partnership (TPP), for which Mexico is in accession negotiations,…