The grain deficit will increase in Jalisco

9 million tons of corn will be imported to the United States Department of Agriculture, which will affect the agro-industry in Jalisco. In the short term, the scenario presented in the international agricultural market suggests less volatility in the prices of more important raw materials, such as corn, wheat and soybeans, given that higher production in their crops is expected. according to a recent report from the United States Department of Agriculture (USDA); and which was approved by the Mexican government through the Agency for Marketing Services and Development of Agricultural Markets (Acerca).

In the case of Mexico, the USDA projects a production of 21 million tons of corn, the vast majority of which is white; and imports of nine million tons (mostly yellow). The total consumption of corn in Mexico is 29 million tons, according to the North American organization.

In this sense, the head of the Center for Strategic Business Analysis of the Chamber of Commerce of Guadalajara (Canaco), Alejandro Guzmán, said that the international panorama of cereals presupposes an environment of less price volatility, but they will no longer fall to the levels of the years of great prosperity in the past decades that brought low prices . For the same reason, he showed that the scenario is high, but already stable, prices.

In the case of Jalisco, he indicated that the challenge of the production chain remains valid, between the primary sector and the agro-industry that requires raw materials, which may even lead to a reduction in imports.

The deficit is increasing for Jalisco

Since it is the headquarters of agri-food companies that consume large quantities of grains and soybeans, the demand for imports of these products will increase in Jalisco, as reported by the state director of the National Association of Balanced Food Producers (Anfaca), Fernando Lozano, who said that corn imports will increase, especially since there are signs that white corn production in Sinaloa will drop from 5 million to just 2.6 million tons in the harvest that will be generalized, due to low water supplies in the country’s dams.

He stated that Jalisco’s livestock industry sector alone, which includes meat, milk and egg producers, annually needs three million and 600 thousand tons of corn (preferably yellow), along with more than 300 thousand tons of soybeans. He said that the consumption of the livestock sector exceeds the national production (close to 3 million tons), so the deficit increases with the consumption of nixtamal and starch industry.

This manager said that although the international price of food will be stable, both Mexican processors and consumers have exchange rate volatility against them, which raises the mark every time the price of the dollar rises sharply.
In this sense, he said that the production of yellow corn in Jalisco has stagnated, so this points to resorting to imports and purchases as determined by the international market.

Source: Informer

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