Mexico and Canada promote agrifood development

06/01/2021

During the Sixteenth Annual Meeting of the Agribusiness Working Group of the Mexico-Canada Alliance (ACBG), members of both countries agreed to contribute to the agrifood development of their inhabitants.

Mexico and Canada promote agrifood development
Mexico and Canada promote agrifood development

Within this framework, the agroindustry specialist, Aristóteles Vaca Pérez, said that these ties are very important, since they promote food growth and strengthen organic equivalence between Mexico and Canada.

The idea is to take advantage of this network of free trade agreements to grow the economy of both countries through one of the most important productive sectors: the agrifood sector," said Vaca Perez.

Another topic discussed during the annual meeting was improving the wages and quality of life of migrants, in which they agreed, through the Mexico-Canada Seasonal Agricultural Workers Program, to develop a formal strategy to plan and ensure the availability of the labor needed for food production in both countries.

In light of this, Vaca Perez stressed the importance of creating special regimes to promote access by indigenous communities and women to trade in both countries, since, he recalled, a large number of migrants in both countries are made up of these sectors.

It is a great success to work to improve the quality of life of migrants, especially that the inclusion of indigenous groups and women, who are a fundamental part of this work, has been put on the table," she said.

The Mexico-Canada Alliance (AMC) seeks to achieve common objectives and strengthen their relationship through eight working groups: Agribusiness; Trade, Investment, and Innovation; Human Capital; Forests; Energy; Environment; Labor Mobility, Housing, and Urban Development.

AMC reports that both countries have an annual international exchange of agrifood products amounting to three and a half billion dollars a year, and highlights that the products in greatest demand are avocado, tomato, bell pepper, berries, and beer.

Mexico's agrifood surplus exceeds 10 billion dollars

The surplus of the Mexican agrifood trade balance reached 10,475 million dollars until October, an annual growth of 42.5%, informed this Sunday by the Ministry of Agriculture and Rural Development (Sader).

The positive balance in the middle of the pandemic was achieved with an annual increase of exports of 4.23% up to a value of 32.571 million dollars, the agency said. Sales abroad, said Sader, represented 59.6% of the total value of 54,667 million dollars in agrifood trade.

By segment, agricultural exports increased by 5.36 % to 15,314 million dollars, with a surplus of 4,832 million dollars in the first 10 months of the year.

Meanwhile, agro-industrial exports advanced 3.25%, equivalent to 17,256 million dollars in the same period, with a positive balance of 5,643 million dollars. In contrast, total agri-food imports fell by 7.5% to 22,096 million dollars.

"It should be noted that both in exports and trade surplus, this is the highest growth recorded in the sector during the current administration," presumed Sader in his report.

The statistics of the agrifood sector are given while Mexico accumulates a contraction of 9.6% of the GDP in the first three quarters of the year due to the crisis of covid-19. Primary activities grew 7.6% year-on-year in the third quarter, while secondary and tertiary activities fell 8.8%, according to the National Institute of Statistics and Geography (Inegi).

Sader reported that the agrifood product with the highest sales abroad from January to October has been beer, with revenues of US$ 3,806 million. It is followed by avocado with 2.530 million dollars, tomato with 2.151 million dollars, tequila and mezcal with 1.968 million, bakery products with 1.218 million, and bell pepper with 1.142 million.

The products with greater annual advances are pork with 36.4%, coffee with 33.2%, tomato with 23%, tequila and mezcal with 20.4%, cattle with 19.5%, onion and garlic with 18.1%, and cucumber and pickles with 16.7%.

Sader detailed that the agrifood sector contributes 9.68% of Mexico's total exports, while its surplus is equivalent to 41.6% of the positive balance of Mexico's Trade Balance.