Mexican beer and avocado performed well in exports

Published on 04 October 2019

The two products have stood out for the growth in the value of their exports, and face good future conditions.

Mexico's export offer is one of the most diverse globally. Its portfolio includes both industrial products, as intermediate goods, raw materials and food.

In this last category, in which the competition is increasing with other producers in the region, the value of shipments of some products has maintained its dynamism and reinforces the importance of the good commercial relationship with the great economies of the world, especially , U.S.

But among all the products, in the food sector there are two that have stood out for their good performance: avocado, the badge of the Mexican agribusiness supply, and beer, specifically that of malt. In the following tables, you can see the performance of the value generated by the shipments of both in the first seven months of the year compared to the same period of the previous year.

The main factor behind the rise in avocado exports has been the higher price due to the use of an open window due to the lower production of California, which generated an exceptional opportunity to serve the huge US market, which in itself already depends on 80 % of Mexican avocado. On the other hand, it is worth mentioning that it is expected to reach an export record when the supply is supplied by road production, which will be the result of an exceptional flowering, in contrast to a complicated season for crops.

Meanwhile, beer is a much more standardized product and linked to commercial efficiency factors to connect supply and demand. The brands produced in Mexico have a worldwide reputation that allows them to continue gaining ground in the market, and that has been demonstrated in the figures.

However, while the offer is diversified in several destinations, it is important to note the importance of the United States as the main buyer of both products. In the following tables, the list of main markets is shown, as well as the means of transport used, which unlike other products, have a predominance of land shipments, even railways, taking into account that beer production can occur in plants located in the north of the country, and it is economical to mobilize the product in tanks.

In general, Mexico faces good conditions for its exports after the restructuring of the North American Free Trade Agreement (Nafta) until its replacement by the United States Mexico Canada (USMCA) Treaty. The commercial war seems to have centered between the United States and China, and the border problem is the main challenge along the way, while products have the potential to continue expanding whenever the necessary security and demand conditions exist, with a US market that It has turned on the warning lights for an alleged recession on the way, but so far it is still growing.

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