Corn Imports in Mexico: Another Year on the Rise
Corn imports in Mexico have increased over the past year, signaling higher consumption but also a production shortfall compared to demand.
Mexico ranks among the world’s top consumers of corn. Corn imports in Mexico reached a record high in the 2022-2023 season, which concluded on September 30th of the previous year.
All indications suggest that it will set another historical record in the 2023-2024 cycle, according to estimates from the United States Department of Agriculture (USDA).
These peaks are expected despite Mexico maintaining a decree that restricts the import of genetically modified corn and a 50% tariff on white corn imports.
It’s incredible that, despite all these measures, corn imports in Mexico have reached such significant proportions.
Foreign corn purchases in Mexico increased from 17,572,000 tons in the 2021-2022 cycle to 18 million tons in the 2022-2023 cycle.
Corn Imports in Mexico: 2023-2024
The USDA projects that this figure will continue to grow to 18.2 million tons in the 2023-2024 marketing year.
On June 23, 2023, the Mexican government announced a 50% import tariff on white corn, effective until the end of 2023.
This tariff does not apply to American corn due to existing free market commitments under the United States-Mexico-Canada Agreement (USMCA).
The government has sought to curb corn imports in Mexico, but so far, it has not been successful. Previously, a presidential decree imposing a temporary 50% tariff on Mexican white corn exports was in effect from January 16 to June 30, 2023.
According to the decree, the aim is to control the supply, production, and price of white corn in Mexico, thus controlling the prices of various corn-based consumer products, mainly tortillas.
During the first half of the year, the Mexican government faced protests from Sinaloa farmers who demanded an expansion of the price guarantee program for corn, as its price had fallen by 25% compared to 2022.
Meanwhile, for the 2022/2023 campaign, the Mexican government’s estimate for white corn imports is the lowest since 2012.
The average white corn imports for the 2012-2022 season are reported at 830,000 tons per year. However, for the 2022/2023 cycle, the Mexican government estimates white corn imports at 490,000 tons, a 40% reduction.
From October 2022 to July 2023, U.S. white corn exports to Mexico decreased by approximately 75% compared to the average white corn exports during the same period in the 2012/2013 and 2021/2022 seasons.
The USDA’s forecast for Mexico’s corn production in the 2023/2024 marketing year has been reduced to a year-on-year rate of 2.1%, totaling 27.4 million tons, while the projected planted area increases slightly.
As northern Mexican farmers make decisions about fall/winter planting, a small portion of planted area may shift to crops that require less water, such as wheat, sunflower, safflower, chickpeas, and barley.
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El Financiero
