He food industry is facing an increase in food prices not seen in more than 50 years. According to data from the Organization for Economic Co-operation and Development (OECD), one of the 33 countries that recorded double-digit food inflation last year was Mexico, with an annual variation of 14.5 percent.
In the sixth edition of Agronegocios Business Summit 2023., organized by Deloitte, at its inauguration she emphasized the need to rethink how to restructure the agricultural and food sector. Which is why the disruptions must be overcome in order for the country to continue to be an important supplier.
Except, Juan Cortina Gallardo, President of the National Council of Agriculture, he mentioned the responsibility that the sector has to feed in a safe and affordable way. To achieve this, the agro-industrial sector must rely on science and technology to produce more and better food with a sustainable approach.
Economic overview of the sector
As part of the Agribusiness Business Summit, Irene Espinosa Cantellano, Deputy Governor, Bank of Mexicohe pointed out that the increase in fertilizer prices has a significant impact on the agricultural sector.
Furthermore, it highlights the effect of a 10% increase. nitrogen fertilizerss on the total production costs of the crops that use them the most (maize, sorghum, wheat and sugar cane), taking as a reference their relative importance in the total production costs per hectare.
The directive emphasized that production specialization, the area planted with crops that use these inputs and regional requirements in the use of nitrogen fertilizers influence these results.
He pointed out that climate shocks that affect municipalities produce cereals, fruits and vegetables could directly affect the prices of agricultural products in household consumption throughout the country. This would also result in indirect effects on the prices of processed food and food services.
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Water use, a challenge in the agri-food context
Water is necessary for the production of the food we eat. Agriculture alone is the largest consumer of water in the world. Amount agua What is needed will depend on where they are produced as climate and farming practices play a fundamental role.
On the panel Water Use: The Challenge for Agricultural Sustainability, legislator Rubรฉn Muรฑoz said that if as a country an agreement can be established on three fundamental issues: better infrastructure for the countryside, modernization of irrigation systems and re-agriculture, the problem of water use can be solved.
Mexico has one of the biggest challenges to solve in terms of water use: 76% of every liter of water goes to the food production sector. If 10 irrigation areas in the country are modernized, the problem of 10 most important cities can be solved.
The panel concludes that water is a matter of law, its use is support agriculture which gives validity to the possibility of guaranteeing the human right to food and converges with the human right to water. With good distribution, there will be water to supply personal and household needs.
Climate changes
He climate changes It also poses a risk to the agri-food sector and natural resources. The main reason is that climate change generates an increase in temperature and a decrease in precipitation in certain areas, and also contributes to an increase in the frequency of droughts and floods.
These problems, combined with the increased demand for water associated with the growth of the agricultural sector, make Latin America and the Caribbean particularly vulnerable to climate change. The population living in rural areas is particularly vulnerable because their survival and well-being are highly dependent on the environment.
Climate change requires resilience because we are not sure what will happen and we have to be prepared for anything, says Rocรญo Canal, a leading partner for sustainability and climate change.
Finally, this forum organized by Deloitte ends by pointing out the importance of focusing on science rather than ideologies.
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