US-MEXICO AGRICULTURAL PARTNERSHIP. March 2017
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1 US-MEXICO AGRICULTURAL PARTNERSHIP March 2017
2 Before 1994 Lack of clarity about trade and investment rules Lack of skills needed to compete in the global marketplace Limited competition Focus mainly on well-known, secure domestic market No incentives to look beyond own borders
3 Mexico s Agriculture Today Increased productivity Mexico is now the World s 12th largest food producer Improved food safety and SPS status Producing safe and high quality nutritious foods Competitive in the global marketplace Access to markets through a network of 11 FTAs that provide preferential access to 46 countries that account for 70% of the World s GDP Mexican Farmers and Agribusinesses are leading with Vision & Responsibility
4
5 Million dollars Million dollars Mexico-US Agricultural Total Trade ,000 25,000 In 2016, bilateral Agricultural Trade was close to $43 billion dollars, which is 521% greater than in ,785 45,000 40,000 35,000 20,000 30,000 15,000 25,000 20,000 10,000 15,000 5,000 6,886 10,000 5, Mexican Ag Exports to the US US Ag Exports to Mexico TOTAL AGRICULTURAL TRADE Source: GATS, USDA with data from the U.S. Census Bureau Trade Data..
6 Mexican Agricultural Exports to the US 1993 vs 2016 Fish & Crustaceans 8% Coffee, Tea, Maté & Spices 8% 1993 $3,160 million dollars Vegetable, Fruit Or Nuts Preparations 5% Beverages, Spirits & Vinegar 9% Other 12% Live Animals 14% Edible Vegetables 30% Edible Fruit & Nuts 14% Cocoa & Cocoa Preparations 2% Live Animals 2% Meat & Edible Meat Offal 4% Vegetable, Fruit Or Nuts Preparations 5% Fish & Crustaceans 2% Cereal, Flour, Starch Or Milk Preparations 5% Sugars & Sugar Confectionery 5% 2016 $24,874 million dollars Beverages, Spirits & Vinegar 19% Other 7% Edible Vegetables 25% Edible Fruit & Nuts 24% Source: GATS, USDA with data from the U.S. Census Bureau Trade Data..
7 US Agricultural Exports to Mexico 1993 vs $17,911 million dollars Beverages, Spirits & Vinegar 3% 1993 $3,726 million dollars Other 18% Live Animals 3% Miscellaneous Edible Preparations 3% Edible Fruit And Nuts 4% Residues And Waste From The Food Industries 6% Dairy Products 7% Animal Or Vegetable Fats 7% Cereals 20% Meat & Edible Meat Offal 13% Oil Seeds & Oleaginous Fruits 16% Beverages, Spirits & Vinegar 2% Animal Or Vegetable Fats 4% Sugars And Sugar Confectionery 4% Edible Fruit And Nuts 4% Miscellaneous Edible Preparations 6% Dairy Products 7% Other 15% Residues And Waste From The Food Industries 9% Oil Seeds & Oleaginous Fruits 11% Cereals 21% Meat & Edible Meat Offal 17% Source: GATS, USDA with data from the U.S. Census Bureau Trade Data..
8 Top Mexican Ag Exports to DESCRIPTION the US UNIT VALUE (MILLION DOLLARS) % GROWTH 1993/2016 Beer KL 163,190 3,102, % Tomatoes MT 304,041 1,964, % Avocados MT 853 1,768, % Tequila LITPF 99,617 1,116, % Peppers MT 134,720 1,072, % Berries MT , % Bovine Boneless Fr/C MT , % Cattle NO 0 584, Sugar Confectionery MT 20, , % Nuts MT 54, , % Straw berries MT 17, , % Other Bakers Wares MT 31, , % Cucumbers MT 79, , % Cookies MT 0 482, Lemons/Limes MT 0 406, Grapes MT 55, , % Vegetables MT 114, , % Asparagus MT 32, , % Pumpkins, squash MT 0 350, Cane sugar, Other MT 0 342, Source: GATS, USDA with data from the U.S. Census Bureau Trade Data.
9 Top Mexican Ag Imports from DESCRIPTION the US UNIT VALUE % GROWTH 1993/2016 Corn MT 42,643 2,601, % Soya Beans MT 0 1,462, Soya-Bean Residue MT 40, , % Sw ine Hams, Fr/Ch MT 19, , % Wheat MT 0 610, Bovine Boneless Fr/C MT 49, , % Food Preparations KL 51, , % Milk Pow der <1.5% Fa MT 85, , % Fructose, Syrup >50% MT 7, , % Brew ing Waste MT 3, , % Cotton, Not Carded MT 192, ,365 77% Fow ls, Cuts Fr/Ch MT 0 321, Apples MT 56, , % Soups, Broths KG 21, , % Rice MT 24, , % Tallow MT 0 186, Sauces MT 16, , % Cheese (Except Fresh) MT 10, , % Turkey, Cuts Fr/Ch MT 0 168, Guts, Bladders MT 25, , % Source: GATS, USDA with data from the U.S. Census Bureau Trade Data..
10 Mexico s Corn Supply Source: SIAP, GATS, USDA with data from the U.S. Census Bureau Trade Data.
11 Virginia Mexico Agricultural Trade TOP VIRGINIA AG EXPORTS TO MEXICO VALUE 2015 Million USD Sw ine, Hams, Bone In $51.8 Tobacco $22.5 Wheat $22.2 Turkey, Cuts Fr/Ch $17.6 Sw ine Offal $9.9 Sw ine Cuts, Fr/Ch $8.8 Sw ine Hams, Froz $8.4 Sw ine Offal, Froz $6.2 Sw ine Bellies $5.9 Sw ine Cuts, Froz $4.5 Other products $16.1 AGRICULTURAL TRADE BALANCE TOP VIRGINIA AG IMPORTS FROM MEXICO VALUE 2015 Million USD Tomatoes $13.2 Coffee $10.5 Coffee Extracts $6.2 Tobacco $5.8 Flour Pellet, Fish $3.9 Nuts, Seeds Prep $3.2 Nuts $1.7 Cookies $1.3 Bread, Pastry, Cakes $1.2 Chew ing Gum $1.2 Other products $4.5 Source: WISERTrade, data from U.S. Census Bureau Foreign, Trade Division.
12 FOOD SECURITY Million tons Production Consumption Production Consumption Production Consumption Production Consumption Fruits & Vegetables Grains & Oilseeds Animal Products Processed Foods
13 Alternative Sources Nicaragua: Beef Canada: Pork Dairy Products Wheat Soybeans Brazil: Poultry Pork Soybeans Corn EU: Poultry Pork Beef Dairy Products Wheat Corn India: Rice Vietnam: Rice Australia: Dairy Products Beef Wheat Chile: Poultry Pork Argentina: Beef Corn Soybeans Rice South Africa: Corn New Zealand: Dairy Products Beef
14 FUTURE OPPORTUNITIES Challenging Times
15
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