Mexico could increase yellow corn imports by 28% in 2024 due to marketing problems, low prices and reduced production of this cereal due to drought, the National Chamber of Industrial Corn (Kanami) warned this Monday.
“We are experiencing a severe drought that has affected 78% of the country. Expected production in the spring-summer 2023 cycle will be reduced by one million tons, leaving us with only 18 million instead of 19 million,” estimated Esteban Jaramillo, CEO of Canami, according to the statement.
During participation in the plenary meeting of the National Council of Producers of Balanced Food and Animal Feed (Conafab), the leader of the agro-industrial complex recalled that in the autumn-winter cycle the problem will be more acute, since Sinaloa and Sonora, located in the northwest of the country, are the largest producers of yellow corn.but their dams are at 28% capacity.
“That is, they have nothing to water with,” the manager emphasized.
Photo: Pexels Archive
Although Mexico is self-sufficient in white corn for human consumption, The yellow corn is missing it which is the main raw material used in balanced food industry.
Only in 2022 The sector imported about 12 million tons. (It took 67% of the grain), and this year, according to Jaramillo, “will not be an exception.”
He added that Mexico imports at least 40% of its needs every year. which is equivalent to 18 million tons on average, but could reach 23 million next year due to the effects of drought and decreased productivity.
In addition, he noted that there is now a Treaty-Mexico-United States-Canada Dispute Commission (T-MEC). Mexican policies against transgenic corn and glyphosate.
Photo: EFE Archive
This mechanism, he explained, will determine if a country violates a trade agreement through restrictions set by the government of Andrés Manuel López Obrador in a decree restricting the use of genetically modified corn.
And he reminded that if the violation is corrected, US and Canada may impose tariffs on Mexican exportsWithin the amount they determine as a result of the impact.
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Finally he praised the importance of corn in the Mexican diet, He acknowledged that the grain has applications in more than 60 industries, so, he said, “it’s important to find a solution that doesn’t impact the end consumer.”
On November 16, Julia Alvarez Icaza, an attorney with the Maiza Class Action Law Group, said in Aristegui Live that agribusiness itself provided evidence that planting transgenic corn is harmfultherefore, this saying generates complete evidence, that is, when someone in court admits to incriminating evidence, there is nothing more to discuss.
(according to information from EFE And Aristegui News)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
