is sector that was
stagnant over the past two and a half decades, has become the subject of
government initiatives aimed at its modernization within a larger national
context of economic reform. This essay will look at the challenges of the
agricultural sector and state its new role in the Mexicans economy. The
Mexico agricultural system exports fruits and vegetables, beer and tequila,
seafood and cattle, and imports grains, oilseeds and animal products, some
of these products will be discussed also.
First off the Mexican government has started to promote exports in their
country and has been trying to make agriculture competitive. This has
developed new programs for financing agriculture and capitalizing the
The government has been also trying to protect the country’s
natural resources and trying to promote alternatives in farming. In new
sweeping changes the Mexico government has deregulated markets, lowered
internal trade barriers, and eliminated red tape for investors and
government intervention. All of this has added to the economy of Mexico and
improved the agriculture system from decades ago. Mexico has 39 million
hectares suitable for forests, 125 million hectares suitable for cattle
raising, 30 million hectares suitable for crops and 10 million hectares of
irrigated arable land, which add to promote this country for future use in
this industry. These points are positive for Mexico for future economic
benefit and agricultural improvements.
Mexico is one of the world’s largest exporters of fruits and
vegetables, with value of exports representing 20 percent of the 6.
billion-dollar world trade. The country currently holds one of the top
places in the worldwide fruit production and has low production costs. The
North American market absorbs 90 percent of total Mexican fruit and
vegetable exports, which in 1990, amounted to approximately $990 million
dollars (U.S.). Tomatoes are the principal vegetable produced and exported,
with production added to 3 percent of the total agricultural output.
Tomatoes account for 31.8 percent of vegetable exports. Mexico ranks second
in the world tomato market.
The recent privatization of sugar mills in Mexico has made the
national sugar industry a competitive activity. The new pricing system,
including sliding tariff scale, has created a horizon for price stability
and protests the industry for international market. The tabacco and coffee
sector is very popular and a very big industry in Mexico.
coffee industry ranks fourth in the world.
Beef is a very important product in the producing sector of the
Mexican economy. The beef industry is on the growth with a 9 percent
increase every year for the last 6 years. Pork production is another major
livestock industry. In 1991, 28 percent of Mexico’s total meat came from
pork. Pork is the most ate meat in Mexico, with a 5 percent increase in
pork production between 1990-1991.
Sales of pork products, such as sausage
and cold meats have increased as they make up an important part of the
average Mexican’s diet.
The strengths of the Mexican agricultural system is the fruit and
vegetables production are up to world class standards and Mexico has
different types of climates which allow to produce almost any kind of
agricultural product. They also have a large fishery potential due to the
vast coastline. The weaknesses of the Mexican agricultural system is lack
of modern technology, lack of local manufacturing in equipment and lack of
capabilities of new product development. The flower industry has been a new
economic activity, which has grown in the years. The value of flower
exports has grown from 1 billion dollars in 1982 to 25 million dollars in
The exports to the major markets consist of mainly of carnations and
“Research in Mexico in the 1950’s and 1960’s led to the development of
the high yielding varieties of wheat and rice that launched the Green
Revolution”. The reason for these high yielding varieties and its success
was because of water, fertilizers, machinery and availability to it. The
farmers in Mexico that had access to this progressed, also with the help of
access to water and transport. This can help produced food and security for
a very increasing population in Mexico. Fertilizer use is up in Mexico from
just around 40-50 in the late 1970’s to 70 kilograms per hectare of
cropland in early 1990’s, for the average annual fertilizer use.
a reason for increase growth in food productions and soil conditions in
NAFTA was expected to enhance the division of labour between the United
States, Canada and Mexico in agriculture. The United States would export
more grains, oilseeds, .