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In Agribusiness, the Score Between Brazil and Mexico could be More Elastic

07/03/2018 - 12h35

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MAURO ZAFALON
SÃO PAULO

In soccer, Brazil just defeated Mexico 2 to 0, but in the agricultural field the score could be higher. The commercial relationship between Brazil and Mexico is growing.

The "America First" attitude adopted by the United States and "Mexico First", voiced by López Obrador, Mexico's President Elect, are likely to accentuate commercial friction between the two countries.

It is too early to know for certain, but logic indicates difficulties coming ahead.

The change in President could result in a greater opening of the Mexican market for Brazil.

Brazilian leadership in the supply of many products is favorable to increased commerce with Mexico.

The Mexicans are seeking to diversify their market and trading partners to lower dependency on the United States.

Brazil could be such an alternative partner for the potential supply of major items like meat products. Having been punished by recent illnesses, Mexico has already been looking to Brazil.

From January through May of this year, Mexican imports of meat products totaled 45 thousand tons, 100% more than during the same period in 2017.

In the next ten years, Mexico will import 1.3 million tons of poultry, 36% more than they are currently, according to the USDA (United States Department of Agriculture).

Mexico also depends on the United States for pork and beef products, but Brazil could open up this market and supply these as well.

Mexico will also increase its dependence on corn imports. Within the next 10 years, the country will be importing 24 million tons from abroad.

Mexico is also likely to open up to other Brazilian agricultural products including rice, whole soybeans, soybean meal, sugar and coffee.

Translated by LLOYD HARDER

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