MexECON Blog

Mexico's Top Agricultural Products

Because of Terra Nova's focus on private-equity investments in Mexican agriculture companies, and because of recent news stories detailing how Mexico has ramped up its exports of tomatoes in response to high prices in the U.S. tomato market, it may be useful to review Mexico's top agricultural products.  The following list shows Mexico's top 25 agricultural products in 2007, as detailed on the website of Mexico's ministry of agriculture (the Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca, y Alimentación, or SAGARPA).  The products are ranked by value of production, with the original figures in pesos converted to U.S. dollars at the 2007 exchange rate of $0.0915 (10.928 per U.S. Dollar).

Although corn is listed as Mexico's top agricultural crop, it is important to note that this is white corn, most of which is produced for human consumption at home in Mexico.  The country produces relatively little of the yellow corn that U.S. producers emphasize and that serves in large part for animal feed.  Mexico's other top agricultural goods are largely fresh produce items that can be quite competitive in the U.S. market.

One way to gauge the international competitiveness of an industry is to compare its share of the global industry's total world exports against the home country's share of total world exports.  According to the United Nations International Trade Centre, for example, Mexican exports of all types accounted for 2.0% of total world exports in 2006 (latest available information).  Mexican exports of fresh vegetables, however, accounted for fully 9.1% of the world's fresh vegetable exports.  The U.N. data show that Mexico's tomato exports made up 19.7% of world tomato exports, while the country's cucumber exports made up 22.0% of world cucumber exports.  These figures show that much of Mexico's agriculture is highly competitive.  Given the country's close proximity to the United States, that suggests that Mexican agricultural exports could continue to grow well.

Patrick Fearon, CFA
Vice President, Fund Management

Top 25 Ag Products

 

 

0 comment(s) for “Mexico's Top Agricultural Products”

    Leave a Comment

    Name:
    Website:
    Comment:

    Archive