Mexico's Agricultural Industry - Exports to USA

Mexico's agricultural industry is a vibrant and essential sector of its economy, deeply intertwined with its history, culture, and particularly, its relationship with the United States. From ancient Mesoamerican roots to modern agribusiness, Mexican agriculture is characterized by diverse climates, fertile soils, and a significant contribution to both domestic food security and international trade.

Overview of Mexico's Agricultural Industry

Mexico is one of the world's cradles of agriculture, with indigenous civilizations domesticating plants like maize, beans, tomatoes, squash, avocados, and chili peppers. Today, the agricultural and food sector remains a significant engine of the rural economy, contributing approximately 3.3% of the national Gross Domestic Product (GDP) and accounting for about 12% of total employment.

The sector is a mix of traditional smallholder farming and large-scale agribusinesses. While the country strives for self-sufficiency in basic food items like corn and dairy, it has also strategically positioned itself as a major global exporter of high-value fruits and vegetables, leveraging its favorable climate for year-round production, relatively inexpensive labor, and proximity to major markets, especially the United States.³

Major Areas of Agriculture in Mexico

Agricultural production in Mexico is concentrated in three main areas:⁴

• The irrigated lands of the North and Northwest: This region, including states like Sonora, Sinaloa, and Chihuahua, relies heavily on advanced irrigation systems due to its arid climate. It is a major producer of export-oriented crops, particularly winter fruits and vegetables.
• The Bajío region in Central Mexico: Known for its fertile soils, this area is a significant producer of various crops.
• The tropics of the Gulf of Mexico and Chiapas Highlands: These regions benefit from a more tropical climate and are important for crops like coffee, sugarcane, and a variety of tropical fruits.

Other significant agricultural states include Jalisco, Veracruz, and Oaxaca, each contributing to the diverse agricultural landscape.

Major Produce Items and Volume

Mexico is a global leader in the production and export of numerous agricultural products. Some of the most important include:

• Fruits: Avocados, mangoes, berries, citrus (lemons, limes), bananas, pineapples, and papayas. Mexico is the world's leading exporter of avocados and a major player in mango exports. In 2023, Mexico exported over 450,000 metric tons of mangoes.
• Vegetables: Tomatoes, chili peppers, cucumbers, broccoli, and cauliflower. Mexico is the world's second-largest exporter of chili, broccoli, cauliflower, lemon, and cucumber. In 2023, 1.18 million tons of green chili were exported.
• Grains: Corn, wheat, and sorghum.¹¹ Corn is the most important crop for domestic consumption and animal feed.
• Other: Coffee, sugarcane, and beef, milk, poultry, and pork.

Export to USA and US Dependence

The United States is overwhelmingly Mexico's largest agricultural export market, receiving approximately 60% of Mexico's total agricultural exports and nearly 78% of Mexico's total agricultural exports (some sources indicate even higher, around 91% for horticultural products). This strong trade relationship has seen Mexico's agricultural exports to the US increase by 405% between 2000 and 2018.

In 2024, Mexico became the top market for U.S. agricultural exports at a record $30.3 billion, and conversely, the top source of U.S. agricultural imports, with over $48 billion in agricultural products, including fresh vegetables, beer, distilled spirits, and fresh fruit.

The US relies heavily on Mexican produce, particularly for winter fruits and vegetables.¹² Mexico supplies a significant portion of US imports, including 63% of U.S. vegetable imports and 47% of U.S. fruit and nut imports in 2023. This dependence highlights the interconnectedness of the two countries' food systems, driven by geographical advantages, integrated supply chains, and trade agreements like USMCA.

Internal Consumption and Excess Produce

While a substantial portion of Mexico's high-value produce is exported, particularly to the US, internal consumption remains crucial. Staple crops like corn and beans are primarily for domestic use. Mexico is a net importer of grains, indicating a domestic demand that outstrips local production for certain commodities, especially feed grains for its expanding livestock sector.

Data on specific volumes of "excess produce" beyond exports and internal consumption is challenging to quantify broadly, as agricultural supply chains aim to optimize for sales. However, like any large-scale agricultural producer, Mexico undoubtedly experiences periods of surplus due to favorable growing conditions, market fluctuations, or logistical challenges. This "excess" could manifest as:

• Unsold produce at farms: Due to oversupply or quality issues that don't meet export standards.
• Post-harvest losses: A common issue in agricultural systems globally, resulting from inadequate storage, transportation, or handling.
• Produce that doesn't meet aesthetic standards: Often perfectly edible but deemed unsuitable for commercial sale.

Donating Excess to US Communities and Local Communities

While there isn't extensive, publicly available data detailing specific programs for donating excess Mexican produce to US communities, the primary focus for managing surplus would typically be:

• Local Mexican communities: This is the most direct and impactful avenue for food security and poverty alleviation within Mexico. Various food banks, charities, and community programs likely work to distribute excess produce to those in need.
• Value-added processing: Turning surplus fresh produce into processed goods (juices, canned goods, frozen items), dried item can extend shelf life and create new markets.
• Animal feed or compost: Produce unsuitable for human consumption might be used for livestock feed or organic composting.

Direct large-scale donation of fresh produce across the border to US communities faces significant logistical, regulatory (food safety, customs), and cost hurdles. However, it's not impossible for individual growers or organizations with cross-border partnerships to facilitate such efforts on a smaller scale, especially in border regions. The focus of the US-Mexico agricultural trade largely remains on commercial transactions.

Here’s an analysis of key organizations that rescue excess Mexican produce and distribute it across the U.S., based on web findings and stakeholder insights:

✅ Conclusion

These organizations collectively form a robust ecosystem for rescuing and redistributing excess Mexican produce. Quality-focused programs at the border (Borderlands, CFBSA) can be scaled nationally by leveraging tech-enabled models (Farmlink, Sharing Excess) and farm-friendly pipelines (SoSA). Integrating these efforts can significantly curb waste and combat food insecurity—especially in underserved areas.

Would you like help identifying regional partners, designing collaborative frameworks, or mapping logistics for scaling these models?

Revenue and Importance for Mexican Economy

The agricultural industry is a significant contributor to Mexico's national revenue. In 2023, the total value of agricultural and fishing exports amounted to US$19.8 billion from January to November, a 4% year-on-year increase. The agro-industrial and agricultural trade balance recorded a surplus of US$6.09 billion from January to September 2023, highlighting the sector's net positive contribution to the economy. Beverages (beer, tequila, mezcal), vegetables, and fruits are the main export groups, accounting for 60% of sales.

Beyond direct revenue, agriculture provides livelihoods for millions, supports rural development, and ensures food security for the Mexican population.¹⁶ It also plays a vital role in the supply chains of various related industries, from food processing to transportation.

Number of People Employed and Living Conditions of Farm Workers

As mentioned, the agriculture sector accounts for approximately 12% of total employment in Mexico. This translates to millions of people, a significant portion residing in rural areas.

The living conditions of farm workers in Mexico vary widely. Many are smallholder farmers engaged in subsistence or semi-subsistence agriculture, often facing challenges such as limited access to credit, technology, and market information.¹⁷ Others are migratory workers who follow harvests across different regions or even across the border to the US.

Challenges faced by farm workers can include:

• Low wages: Especially for unskilled labor, wages can be insufficient to lift families out of poverty.
• Precarious employment: Many jobs are seasonal, leading to unstable incomes.
• Poor working conditions: This can include long hours, exposure to pesticides, and lack of adequate sanitation or safety equipment.
• Lack of social security and benefits: Many farm workers, particularly those in informal settings, may not have access to healthcare, pensions, or other social protections.
• Housing issues: Temporary or substandard housing is a common problem for migratory workers.
• Exploitation: Vulnerable populations can be susceptible to exploitation by employers or intermediaries.

While these challenges exist, there are also efforts by government, NGOs, and some responsible agribusinesses to improve conditions through fair labor practices, social programs, and infrastructure development in rural areas.

Government Programs for Farmers and the Industry

The Mexican government, primarily through the Ministry of Agriculture and Rural Development (SADER), implements various programs to support farmers and the agricultural industry. Some key objectives and initiatives include:

• Promoting competitiveness: Programs like the "Programa de Fomento a la Agricultura" (Agriculture Promotion Program) and the "Programa de Productividad y Competitividad Agroalimentaria" (Agri-Food Productivity and Competitiveness Program) offer incentives for increased productivity and market access.
• Boosting domestic production: President López Obrador's administration has prioritized programs to promote and incentivize small-scale production and local consumption, aiming for self-sufficiency in core agricultural products like corn and dairy. The PACIC (Paquete Contra la Inflación y la Carestía) initiative, for example, aimed to maintain fair prices for basic food items and supported increased grain production by subsistence farmers.
• Fertilizer production and distribution: Efforts to bolster domestic fertilizer production for small producers are part of government strategies to enhance yields.²⁸
• Risk management: Programs for agricultural insurance, early weather notifications, and warning systems help farmers adapt to climate extremes and related challenges like floods and pests.
• Technological adoption: While access varies, there are initiatives to provide information and new technologies to farmers, particularly in less developed regions.²⁹
• Sustainable practices: Encouraging practices like Conservation Agriculture aims to increase productivity while preventing soil degradation.³⁰

Despite these programs, challenges remain in equitable land distribution and ensuring that benefits reach all farmers, particularly the most vulnerable.

Dependence of USA with Mexican Produce

The United States' dependence on Mexican produce is substantial and multifaceted. Mexico serves as a crucial supplier for a wide array of fresh fruits and vegetables, especially during the colder months when domestic US production is limited.³² This reliance ensures year-round availability and helps stabilize food prices for American consumers.³³

Key aspects of this dependence include:

• Complementary growing seasons: Mexico's climate allows for continuous production of many high-demand items when US growing seasons are off.
• Variety and quality: Mexican growers have invested in modern techniques and cold chain logistics, ensuring high-quality produce.
• Geographic proximity: The shared border facilitates efficient transportation and reduced logistical costs compared to more distant suppliers.
• Trade agreements (USMCA): The United States-Mexico-Canada Agreement (USMCA) largely maintains the market access provisions of its predecessor, NAFTA, further cementing the integrated agricultural trade relationship.

However, this dependence also brings challenges, such as food safety concerns, labor conditions in Mexico, and the potential impact of political or economic shifts on cross-border trade. Both countries have a vested interest in ensuring the stability and sustainability of this critical agricultural partnership.