Source: "El Mercado Agropecuario" weekly agri report in Mexico, unless stated otherwise.

AGRICULTURE
Minister of Agricultre Mayorga stated that of the 5 million dollars assigned to agricultural support, not all these subsisies have been applied adequately and do not reflect in a higher production of food. There is still the need to increase investments in public goods, training and research as well as the promotion of Mexican products for international markets.

The Ministry will reduce its programs from 8 to 6 in order to improve efficiency in the use of its budget. Priorities have changed to: climatic change, infrastructure, prevention and handling of risks (climate, sanitary, market), sustainability, rural extensions and market development. An area that will receive special budgetary attention will be that of public goods (infrastructure, health issues, research and development, training and market promotion).

Mexico uses 34% of its total expenses for the agro sector, but GNP of the sector does not reach even 2%, said the Agriculture Minister.

ANIMAL PRODUCTION
Animal Feed
There has been an important growth of 60% in the national consumption of natural feed products for bovine and poultry. There has also been an increase of feed producers of different sizes.

Meat
Mexican TIF slaughterhouses have reached export quality, but lack of normativity and disarticulation of value chains still affect their performance.

DAIRY
Dairy Research Mission: last 7th to 14th of July researchers from Wageningen University visited several Mexican dairy organisations, companies and farms in order to obtain relevant information for a Dairy Study that will be presented in the upcoming event FIGAP/VIV Latinamerica 2010 in Guadalajara, Mexico. This report will be available to our contacts, upon request. (Netherlands Embassy - LNV Mexico)

The disappearing dairy farms: Milk production in Mexico has been growing slowly - 1.6 percent yearly during most of the first decade of this century. One of the reasons for the poor performance is that the industry is characterized dairy operations. For dairy farmers, even as consumer nominal milk prices rose by 73 percent since January 2000, the prices paid to them grew by only 53 percent. With margins under pressure estimates have ten percent of dairy producers abandoning milk production. (Agribusiness World, Rabobank International 19-23 July, 2010)

Lots of dairy producers but little milk: Over the last decade milk production has grown at an average of two percent annually. While this is above the growth rate of the population it hasn't been enough to keep Mexico from being a major importer of dairy products. Imports went from US$ 570.5 million in 2000 to US$ 1,032.3 last year. One of the reasons explaining the relatively low growth rate is the dichotomy in the structure of milk production. Small family-type operations represent some 77 percent of the dairy operations, but they produce only ten percent of the milk. Compared to some other countries where there are also a large number of small family-type operations, the low level participation in national production isn't so much a function of the small number of cows per farm, but the low productivity per cow. Largely this is due to poor genetics and inadequate or deficient feed, and is a reflection of the poverty which characterizes many of these producers. This also contributes to poor quality and sanitary conditions, which means that these producers don't get top prices for their milk. (Agribusiness World, Rabobank International 1-12 August, 2010)

ANIMAL HEALTH AND PHYTOSANITARY ISSUES
Negotiations Mexico - EC on pig products: The EC and animal health authorities of the Ministry of Agriculture had their first round of discussions on the possibilities for the export of pig semen, pork meat and breeding swines to Mexico. Hot topic for discussion is the acceptance of Mexican authorities of regionalization in the case of animal disease outbreaks in the EU. (Netherlands Embassy - LNV Mexico)

 

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