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MINISTRY OF AGRICULTURE, LIVESTOCK, RURAL DEVELOPMENT, FISHERIES AND FOODJorge Rueda SousaTel Aviv June 2012
BUSINESS OPPORTUNITIES IN MEXICO
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OVERVIEW
2006 2010
Total Population: 104.9 million 112.3 million
Urban population 71.6 million 76.8 million
Rural population 28.4 million 23.2 million
Population Anual Rate Growth (%) 0.9 1.4
Life expectancy at birth, total (years)
74.8 77
Surface Area: 1.964 million sq. km.
Political System Federal Republic
Administrative division 31 States 1 Federal District
GDP 1.035 Billon USD (12Th Economy)
GDP per CapitaGDP per Capita PPP
9,135 US dollars13,900 US dollars
Source: World Bank and Banco de México
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In the next 30 years the working population will reach 88 million
By 2025 the non-working population will reach a historical minimum of 46.1%. (Source: CONAPO)
Demographic forecast
DEMOGRAPHICS
Positive demographic bonus
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Source: SIAP, SAGARPA
21,363,084437Total Crops
18,84631Ornamentals
554,708104Vegetables
1,328,52488Fruits
Area (hectares)
NumberCrops
CLIMATIC CONDITIONS
Mexico´s territory has:
• 45% has a hot-humid climate
• 26% has a warm-humid
• 20% is hot-dry
Allowing to produce 437 different crops, making ornamentals, fruits and
vegetables products the highest potential
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North WestTomato, Table Grapes, Mango, Asparagus, Cucumber, Beef, Pork, Wine, Lobster, Squid, Sardines
• Centre WestAvocado, Mango, Garlic, Berries, Coconut, Tequila, Mezcal, Beef, Poultry, Poultry Egg
• Centre EastOrnamentals, Potato, Tender Cactus, Prickly Pears, Papaya, Coffee, Poultry, Poultry Egg
• SouthMezcal, Coffee, Coconut, Mango, Vanilla, Citrus, Pineapple Tropical fruits.
• South EastCoconut, Mango, Chili Pepper, Orange, Grapefruit, Octopus, Pork
• EastCitrus, Banana, Coffee, Pineapple, Beef.
• North EastCitrus, Potato, Chili peppers, Beef
• NorthPeach, Apple, Guava, Onion, Chili peppers, Beef, Horsemeat, Mezcal, Sotol
MAIN PRODUCTS BY REGION
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Cereals19%
Fruits and Vegetables
39%
Others42%
PRODUCTION VALUE
Others91.6%
Fruits and Vegetables
8.4%
CULTIVATED AREA
Fruits and vegetables represent almost 10% of the cultivated area and generate more than one third of the total value in this sector.
HIGHLY POTENTIAL PRODUCTS
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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DIC
Avocado HassWhite Garlic Zac.Purple GarlicOnionSpring OnionJalapeño pepperStrawberry GuavaPersian Lime Mango (Ataulfo) Mango (Haden) Mango (Kent) Mango (Manila) Mango (Tommy) Melon (Cantaloupe)Papaya (yellow)Papaya (maradol)Pineapple BananaAsparagus Sonora-B.C. WatermelonGrapefruit (red) Table Grape (Flame seedless)Table grape (Perlette)Table grape (Sugarone)
Gro -Chis
Nayarit- Tabasco-Sonora- Coahuila- Sinaloa
Morelos-Guanajuato-Chihuahua-Baja California
Ver-Yuc
Michoacán-Baja California
Baja California Baja CaliforniaSinaloa Jalisco Chihuahua
PRODUCTION CALENDAR BY STATE
MichoacánZacatecas
Guanajuato
Michoacán
Aguascalientes - Michoacán
ChiapasVeracruz
Mich-Sin-NayaritMich-Sin-Nayarit
Mich-Sin-Nayarit
Sonora
Guerrero- Sonora- Baja CaliforniaVeracruz Veracruz
Veracruz- OaxacaOaxaca Veracruz Yucatán Oaxaca
Sonora
Chiapas-TabascoGuanajuato
Sonora
OPPORTUNITIES
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TRADE
To promote industrial competitiveness and export-oriented growth, fostering new investment opportunities and a guaranteed preferential market access for our exports, Mexico has embraced FTA with 42 countries: • 12 international free trade agreements• 27 bilateral investment agreements Accounting for a combined market of nearly one billion consumers across three continents, making approximately more than 90% of Mexico's exports to the world duty free.
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Ene - Dic 2009 (MDD)Ene - Dic 2010 (MDD)
Ene - Dic 2011 (MDD)-5,000.0
0.0
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
16,167.818,292.8
22,252.518,943.7
21,605.4
27,066.9
-2,775.9-3,312.5
-4,814.4Exportaciones Importaciones Balanza Comercial
Mill
ions
of D
olla
rs
+ 21.65 %
+ 13.14 %
Source: ASERCA with Bank of Mexico data (10/02/12)
Agricultural Trade Balance 2009-2011
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Product 2010 2011 % Growth % Share 2011
TOTAL 18,292.83 22,252.47 25.24 1001 •Beer 1,614.01 2,022.12 25.29 8.792 •Tomato 1,545.75 2,009.50 30.00 8.743 •Avocado 672.62 989.68 47.14 4.304 •Tequila 748.01 831.18 11.12 3.615 •Live cattle 534.49 817.84 53.01 3.566 •Sugarcane 318.72 671.19 110.59 2.927 •Green coffee 296.02 550.64 86.02 2.398 •Sweets 447.73 454.69 1.55 1.98
9•Fresh and chilled vegetables (Asparragus, Eggplant, Celery, Mushrooms, capsicum and Spinach)
393.33 394.83 0.38 1.72
10•Blackberries, raspberries, cranberries and blueberries
324.81 372.25 14.60 1.62
11 •Capsicum and pepper 299.06 350.48 17.19 1.5212 •Bakery 277.99 315.19 13.38 1.3713 •Shrimp and lobster 214.71 314.32 46.39 1.3714 •Cookies 244.38 313.79 28.40 1.3615 •Processed food 278.76 305.20 9.48 1.3316 •Onion 247.88 303.57 22.47 1.3217 •Bell pepper 293.46 303.38 3.38 1.3218 •Durum wheat 85.84 298.47 247.71 1.3019 •Frozen concentrated orange juice 146.67 279.16 90.33 1.2120 •Chocolate 207.08 276.98 33.75 1.20
Agrifood exportsMillions of US Dollars
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Product 2010 2011 % Growth % Share 2011
21 •Brocolli, Asparragus, coliflor 222.73 271.06 21.70 1.1822 •Cucumber 268.05 265.51 -0.95 1.1523 •Chilled and frozen Pork meat 221.92 265.04 19.43 1.1524 • Infant processed food 218.61 261.65 19.69 1.1425 •Roasted or flaked cereal 224.93 256.41 13.99 1.1126 •Tobacco cigarretes 246.94 248.97 0.82 1.0827 •Persion lime 186.32 247.45 32.80 1.0828 •Watermelons 280.42 241.68 -13.82 1.0529 •Strawberries 188.77 232.52 23.18 1.0130 •Bottled Water 182.19 219.56 20.51 0.9531 •Frozen beef meat 68.63 202.28 194.74 0.8832 •Sauces, preparations and condiments 179.43 199.39 11.13 0.8733 •Chilled beef meat 117.39 195.10 66.19 0.8534 •Mangos 153.55 188.94 23.05 0.8235 •Groundnuts prepared or preserved 119.89 180.54 50.59 0.7836 •Table grapes 156.90 140.22 -10.63 0.6137 •Instant coffee 112.73 131.89 17.00 0.5738 •Other sugars 56.13 131.59 134.42 0.57
% Share 68.89 71.61 71.61
Agrifood exportsMillions of US Dollars
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Country 2010 % Share Country 2011 % share
1 USA 14,038.42 76.43 USA 17,440.86 75.822 Canada 612.26 3.33 Canada 714.08 3.103 Japan 571.42 3.11 Japan 707.81 3.084 Venezuela 253.08 1.38 Guatemala 275.70 1.205 Guatemala 232.41 1.27 Argelia 189.65 0.826 Spain 174.31 0.95 Netherlands 188.88 0.827 U.K. 132.71 0.72 Venezuela 183.27 0.808 Netherlands 130.80 0.71 Spain 181.47 0.799 Germany 129.06 0.70 U.K. 174.04 0.76
10 Hong Kong 110.52 0.60 Italy 167.69 0.7311 Italy 110.51 0.60 Russia 162.28 0.7112 El Salvador 109.75 0.60 China 146.60 0.6413 Australia 107.98 0.59 Germany 140.14 0.6114 Colombia 100.33 0.55 Hong Kong 131.21 0.5715 Costa Rica 99.07 0.54 Australia 129.48 0.5616 N/A 90.74 0.49 Costa Rica 113.83 0.4917 China 82.58 0.45 Puerto Rico 113.19 0.4918 Honduras 76.59 0.42 El Salvador 112.91 0.4919 Puerto Rico 76.11 0.41 Colombia 102.49 0.4520 Panama 70.46 0.38 Chile 101.34 0.44
TOTAL 17,309.12 94.24 TOTAL 21,476.92 93.36
Agri-food exports by destinationMillions of US Dollars
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Mexico´s leading exports of fruits and vegetablesMexico´s leading exports of fruits and vegetables
Avocado MangoAsparagusWatermelonMelon
EggplantBroccoli Strawberry GarlicCoffeeSpicesCucumberBell PepperTomato
OnionLimeFrozen AsparagusChickpea
112
3-5
LEADERSHIP
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Product 2010 2011 % Growth % Share 2011
TOTAL 21,605.4 27,066.9 25.3 100.01 •Yellow Corn 1,408.9 2,414.3 71.4 8.92 •Soybean 1,078.9 1,322.3 22.6 4.93 •Canola or rapesed 667.1 973.4 45.9 3.64 •Wheat 717.1 965.2 34.6 3.65 •Chilled beef meat 832.2 885.6 6.4 3.36 •Cotton 628.8 819.6 30.4 3.07 •Skim milk powder 436.3 680.2 55.9 2.58 •Chilled pork meat 640.9 624.1 -2.6 2.3
9 •Fructose syrup 368.1 538.8 46.4 2.0
10 •White corn 110.3 510.0 362.3 1.911 •Beer land wine lees 290.3 463.8 59.8 1.712 •Other processed food 449.3 462.2 2.9 1.713 •Oil cake and solid residues form soya oil ext 321.0 448.3 39.7 1.714 •Broken soybean 512.4 439.8 -14.2 1.615 •Sorghum 229.0 439.7 92.1 1.616 •Animal fat 329.9 435.3 31.9 1.617 •Vegetable Oils 270.3 398.5 47.4 1.518 •Wheat and Meslim 127.8 356.6 179.1 1.319 •Chocolate 210.2 311.5 48.2 1.220 •Paddy Rice 273.3 280.9 2.8 1.0
% Share 45.8 50.9 50.9
Agrifood ImportsMillions of US Dollars
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Product 2010 2011 % Growth % Share 2011
21 •Poultry meat and offals 217.8 248.8 14.3 0.922 •Other sorghum 198.6 248.0 24.9 0.923 •Acyclic alcohol and halogenated 134.1 245.7 83.3 0.924 •Fish fillets 170.2 227.4 33.7 0.825 •Sugar 228.6 220.1 -3.7 0.826 •Apples 230.5 213.3 -7.5 0.827 •Feed 175.3 186.2 6.2 0.728 •Peanuts 110.6 167.0 51.0 0.6
29 •Soup preparations 152.6 164.2 7.6 0.6
30 •Chilled and frozen pork meat 155.5 151.1 -2.9 0.631 •Animal offals 147.3 148.1 0.5 0.532 •Animal and vegetable fat, dehydrated sulphurised 154.3 144.3 -6.5 0.533 •Unrefined vegetableoils 127.8 143.1 12.0 0.534 •Animal offals for human consumption 114.8 141.1 22.9 0.535 •Frozen poultry legs 117.2 140.1 19.5 0.536 •Chilled poultry legs 101.4 135.9 34.0 0.537 •Soybuean flour 181.8 135.7 -25.4 0.538 •Non-roasted Malt 156.0 135.1 -13.4 0.539 •Bakery products 106.6 132.2 24.0 0.540 •Sauces, preparations and condiments 115.3 130.5 13.2 0.5
%Share 60.2 63.6 63.6
Agrifood ImportsMillions of US Dollars
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Investing in Mexico means the opportunity to access a global potential market of around 1,064 millions of people.
Free Trade
Agreements
Population in millions Per Capita Income
(Averagein dollars)
North America 326 35,231
Central America 37 2,177
South America 99 3,415
Europe 467 39,241
Asia 135 34,174
TOTAL 1,064 22,847
WORLD MARKET POTENTIAL
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F & V Meats / Seafood
Others
Mango Asparagus Beef Honey
Avocado Onion Horsemeat Orange juice
Lime Garlic Lobster Coffee
Berries Okra Octopus Mezcal
Red Grapefruit Flowers Headed Shrimps
Tequila
Banana Chickpea Squid Sotol
Table grapePepperPineapple
VanillaSesame seed
PorkPoultryPoultry eggs
Vegetable OilsSugarOrganic Products
SardineFish meal / oil
OPPORTUNITIES
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CountryDFI
(bn US Dollars)
USA 125.1
Spain 36.7
Netherlands 24.8
Canada 9.0
UK 7.4
Virgin Islands 5.2
Switzerland 3.9
Germany 3.9
Other 15.7
Total 231.7
FOREIGN INVESTMENT
Source: Ministry of Economy, Banco de México
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Industry %Credit Institutions, Banking 20.2Auto Industry 7.8Professional, technical, speciality services 6.5Communications 4.9Wholesale of non-food products 4.6Steel industry 3.4Beverage Industry 3.3Mining 3.1Machinery and Electric accesories production 3.0Food sale industry (grocery and convenience stores) 2.9Other 40.3Total 100Source: Ministry of Economy, Banco de México
FOREIGN INVESTMENT
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DOING BUSINESS
Mexico ranks number 51 on the ease of doing business- Brazil 129 - India 133 - Spain 62 - China 89
Doing Business Index
Starting a business
Mexico ranks number 90- Brazil 126 - India 169- Spain 146 - China 151
Source: World Bank
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In Mexico it takes 5 to export / 5 to import- Brazil = 8 export / 7 import - India = 8 export / 9 import- Spain = 6 export / 8 import - China = 7 export / 5 import
Source: World Bank
Number of documents to export / import
Employing workers
Mexico ranks number 136 employing workers- Brazil 138 - India 104 - Spain 157 - China 140
DOING BUSINESS
221999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
Exports México to IsraelImports México from Israel
1999 2000 2003 2004 2007 2008 2009 2010 2011
Exports México to Israel 4,789 4,570 4,556 4,562 7,790 13,480 9,135 14,822 27,237
Imports México from Israel 10,305 7,809 8,991 10,984 17,154 17,490 24,024 24,883 32,407
Total Agrifood Trade 15,094 12,379 13,547 15,546 24,944 30,970 33,158 39,704 59,644
Agrifood Trade Balance -5,515 -3,239 -4,436 -6,422 -9,364 -4,011 -14,889 -10,061 -5,171
Source: Ministry of Trade
Agrifood TradeMillions of US Dollars
23
va2008 vo2008 va2009 vo2009 va2010 vo2010 va2011 vo2011
Frozen orange juice 2,463,473 983,779 671,416 431,722 325,343 113,316 10,170,667 3,479,806
Grapejuice 0 0 0 0 730,625 406,794 2,715,008 1,277,225
Other citrus juice 72,596 54,091 1,279,872 810,170 2,199,168 887,117 1,913,807 713,537
Preserved fruits mixtures 504,959 406,950 270,328 98,894 752,975 443,880 1,856,069 1,462,561Other Fruit jam and marmalade
1,206,598 994,790 255,252 237,020 2,600,770 2,151,313 1,301,161 1,129,775
Pepper 700,735 253,000 695,067 319,000 1,313,950 466,250 1,009,119 310,000
Chickpeas 726,134 627,000 1,198,142 1,331,050 1,109,408 1,214,500 956,498 748,000
Cereal flakes 555,437 289,919 986,107 438,301 941,762 409,198 876,228 359,231
Tequila 653,845 113,515 490,868 88,910 764,536 128,787 747,039 122,303
Orange preserved parts 0 0 0 0 0 0 645,301 631,620
Green coffee 0 0 149,398 56,925 1,049,538 318,675 557,451 93,900
Beer 1,886,206 2,931,391 650,010 588,145 628,669 626,779 518,542 572,543
Lime Juice 845,391 439,050 671,653 506,690 22,492 18,667 492,639 184,667
Other citrus juice with sugar added
1,146,366 621,238 292,726 207,834 595,107 281,853 445,655 164,166
Fish oil, except cod 33,155 21,390 49,000 62,900 277,052 265,090 318,741 232,590
Source: SAGARPA with data from Ministry of Trade (Secretaría de Economía)
Agrifood Exports to IsraelUS Dollars and Kgs.
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Agrifood Exports to IsraelUS Dollars and Kgs.
va2008 vo2008 va2009 vo2009 va2010 vo2010 va2011 vo2011Sugar confectionery 240,039 99,836 330,293 134,399 264,228 128,170 314,204 126,573Preserved chilis 214,699 102,626 200,999 100,632 253,294 128,784 299,728 153,950Extracts, essences with basis of coffee. 206,735 39,998 637,261 94,240 414,115 59,832 286,360 39,888Grape juice Brix < 20° 0 0 0 0 0 0 255,164 476,524Other Chocolates 32,674 10,275 4,064 1,587 100 10 209,151 36,775Flours, meals and pellets of fish or of crustaceans 694,361 633,914 38,712 48,390 170,178 102,209 196,264 151,320Fertilised eggs for incubation 0 0 0 0 29,522 1,892 185,355 14,577Other fructose and fructose syrup 10,135 2,325 95,067 19,028 57,975 17,765 162,477 41,856Frozen Orange juice concentrate < 1.5. 0 0 0 0 0 0 131,885 196,820
Other vegetable saps and extracts 13,170 110 6,230 60 11,922 110 100,906 985Orange essential oil 0 0 0 0 0 0 90,000 14,400Other frozen berries 0 0 0 0 4 4 84,842 28,040Other plants and parts used in perfumery. 0 0 0 0 0 0 81,070 18,000Other palm oil. 15,120 2,486 39,114 9,854 0 0 78,052 15,788Grape essential oil. 0 0 0 0 0 0 59,400 7,920Light air cured tobacco 236,158 58,600 3,974 34,560 98,496 328,320 50,058 166,860Liqueurs and cordials >14°<23° 3,091 264 636 97 12,000 900 38,000 3,150Other vegetable products used for filling 5,000 1,000 3,000 1,000 12,420 2,500 31,355 6,075Other sugar and syrups > 50 fructuose 0 0 0 0 0 0 22,684 5,085Mangos 0 0 0 0 0 0 17,107 6,101Others 1,013,631 115,366 185,896 18,631
Total 13,479,708 9,134,555 14,821,545 27,236,618
Source: SAGARPA with data from Ministry of Trade (Secretaría de Economía)
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va2008 vo2008 va2009 vo2009 va2010 vo2010 va2011 vo2011Tomato seeds for sowing 4,132,376 311 8,313,966 581 9,035,721 494 11,337,016 761Protein concentrate from soja 3,312,357 2,203,452 3,619,021 2,594,161 4,054,940 2,709,912 6,734,074 3,570,905Sweet peper seeds for sowing. 4,139,298 360 4,303,757 508 4,609,193 495 5,391,218 509
Other concentrated proteins 0 0 397,327 126,302 1,262,440 400,806 3,379,425 1,074,400Watermelon seeds for sowing 2,197,534 847 3,526,681 1,355 3,159,254 1,589 2,550,096 1,368Cucumber seeds for sowing 675,370 181 818,151 205 858,202 162 793,033 232Vegetable saps 344,822 40,000 567,820 60,000 451,268 40,400 551,998 156,000Other food preparations 637,788 4,911 1,391,232 580,315 384,290 3,299 456,035 4,590Other sweet biscuits 271,474 24,385 125,211 12,423 270,346 30,212 220,251 17,023Matzos 209,055 47,914 170,157 31,460 152,045 32,552 164,342 34,078Other dried vegetable mixures 171,884 14,373 72,597 4,478 67,941 2,157 133,582 8,023Other live plants including their roots 39,620 531 19,623 437 19,018 256 64,401 641Other peptones and derivatives 27,034 3 40,072 0 28,149 0 50,008 1Grape essential oli 33,770 2,178 43,631 2,720 5,497 316 49,319 2,235Other sauces and preparations 62,856 11,933 60,317 12,471 61,107 15,081 49,033 12,501Other sugar confectionary 55,861 11,836 31,971 6,469 40,345 10,219 43,421 8,996Red and white wine 55,342 12,687 52,909 14,006 57,736 12,601 41,288 9,607Other vegetable saps 82,565 355 66 1 12,289 26 38,218 120Otros 1,041,420 469,340 353,087 360,616
Total 17,490,426 24,023,849 24,882,868 32,407,374
Source: SAGARPA with data from Ministry of Trade (Secretaría de Economía)
Agrifood Imports from IsraelUS Dollars and Kgs.
26
Opportunity to produce practically year-round.
Wide selection and quantity of products.
Good Agricultural and Manufacturing Practices
Availability of diverse products, including organic
specialties and greenhouse.
ADVANTAGES
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Mexico is a land of opportunities available to you.
This is the right moment to organize trade missions to Mexico and to find out what Mexican growers can offer to you.
The Mexican Government will help you to establish long term business relations that will benefit your company and your consumers.
There is a strong interest of Mexican growers for establishing a better and fairer way of doing business.
You are the main player in this strategy and together, with the Mexican growers and the support of the Mexican Government, we will ensure its success.
CONCLUSIONS
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www.sagarpa.gob.mx
www.aserca.gob.mx
www.senasica.gob.mx
MINISTRY OF AGRICULTURE, LIVESTOCK, RURAL DEVELOPMENT, FISHERIES AND FOOD
REPRESENTATIVE OFFICE FOR EUROPE
