US-MEXICO AGRICULTURAL PARTNERSHIP March 2017
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
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
Million dollars Million dollars Mexico-US Agricultural Total Trade 1993-2016 30,000 25,000 In 2016, bilateral Agricultural Trade was close to $43 billion dollars, which is 521% greater than in 1993 42,785 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 5,000 0 0 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..
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..
US Agricultural Exports to Mexico 1993 vs 2016 2016 $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..
Top Mexican Ag Exports to DESCRIPTION the US UNIT VALUE (MILLION DOLLARS) 1993 2016 % GROWTH 1993/2016 Beer KL 163,190 3,102,518 1801% Tomatoes MT 304,041 1,964,306 546% Avocados MT 853 1,768,347 207209% Tequila LITPF 99,617 1,116,919 1021% Peppers MT 134,720 1,072,832 696% Berries MT 134 813,774 607194% Bovine Boneless Fr/C MT 174 610,657 350852% Cattle NO 0 584,836 -- Sugar Confectionery MT 20,937 560,444 2577% Nuts MT 54,291 559,498 931% Straw berries MT 17,985 531,077 2853% Other Bakers Wares MT 31,395 516,347 1545% Cucumbers MT 79,913 482,354 504% Cookies MT 0 482,038 -- Lemons/Limes MT 0 406,039 -- Grapes MT 55,211 396,585 618% Vegetables MT 114,684 354,599 209% Asparagus MT 32,341 350,775 985% Pumpkins, squash MT 0 350,210 -- Cane sugar, Other MT 0 342,178 -- Source: GATS, USDA with data from the U.S. Census Bureau Trade Data.
Top Mexican Ag Imports from DESCRIPTION the US UNIT VALUE 1993 2016 % GROWTH 1993/2016 Corn MT 42,643 2,601,977 6002% Soya Beans MT 0 1,462,600 -- Soya-Bean Residue MT 40,688 763,792 1777% Sw ine Hams, Fr/Ch MT 19,540 679,547 3378% Wheat MT 0 610,720 -- Bovine Boneless Fr/C MT 49,448 523,342 958% Food Preparations KL 51,626 521,777 911% Milk Pow der <1.5% Fa MT 85,291 487,244 471% Fructose, Syrup >50% MT 7,180 364,492 4976% Brew ing Waste MT 3,123 356,173 11305% Cotton, Not Carded MT 192,175 339,365 77% Fow ls, Cuts Fr/Ch MT 0 321,880 -- Apples MT 56,717 230,530 306% Soups, Broths KG 21,943 190,397 768% Rice MT 24,854 190,345 666% Tallow MT 0 186,360 -- Sauces MT 16,507 170,549 933% Cheese (Except Fresh) MT 10,776 169,957 1477% Turkey, Cuts Fr/Ch MT 0 168,605 -- Guts, Bladders MT 25,478 163,718 543% Source: GATS, USDA with data from the U.S. Census Bureau Trade Data..
Mexico s Corn Supply Source: SIAP, GATS, USDA with data from the U.S. Census Bureau Trade Data.
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 2008-2015 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.
FOOD SECURITY Million tons 36.75 29.27 41.57 62.7 21.35 23.1 58.94 38.5 Production Consumption Production Consumption Production Consumption Production Consumption Fruits & Vegetables Grains & Oilseeds Animal Products Processed Foods
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
FUTURE OPPORTUNITIES Challenging Times