Doing Business In (Insert Country Name Here) - Department of ...
Doing Business In (Insert Country Name Here) - Department of ... Doing Business In (Insert Country Name Here) - Department of ...
Return to table of contentsChapter 4: Leading Sectors for U.S. Export and InvestmentCommercial Sectors• Agribusiness• Automotive Parts and Supplies• Education and Training Services• Energy Sector• Environmental Sector• Franchising Sector• Hotel and Restaurant Equipment• Housing and Construction• Internet and IT Services• Packaging Equipment• Security and Safety Equipment and Services• Telecommunications Equipment• Transportation Infrastructure Equipment and Services• Travel and Tourism Services• Agricultural Sector
AgribusinessOverviewReturn to top2008 2009 2010 (estimated)Total Market Size 218,686,451 263,646,429 267,601,125Total Local Production 200,457,153 233,827,729 237,335,145Total Exports 154,197,810 179,867,484 182,565,496Total Imports 83,778,945 64,488,641 65,455,971Imports from the U.S. 26,665,995 22,017,957 22,348,226Source: Secretaria de Economia-SIAVIMexico is among the top 15 world leaders in the agribusiness industry with 27,300hectares of permanent cropland. Mexico is also 10 th in the world in terms of meatproduction, providing a total of 4,911 metric tons of red meat alone. For poultryproduction, Mexico is rated 3 rd globally. 2008 was one of the most dynamic years for theMexican agribusiness industry due to a steady influx of new technologies, machinery,and fertilizers from American, Canadian, and European firms.The sub-sectors that registered the most dynamic growth are the cattle and dairy sectorat 5.8%, followed by corn processing at 2.8%, and wheat processing at 2.6%. Accordingto the Mexican Secretariat of Agriculture (SAGARPA) each sector will have an estimatedgrowth of at least 2% in 2010, despite the current world economic crisis. This is due tothe growing demand for processed foods and corn for ethanol; this estimated growthtranslates into approximately USD $8 billion.The growing agribusiness sector demands modern agricultural machinery, more efficienttechnology, fertilizers, enhanced pesticides to protect crops, animal feed, and packagingequipment.Best Prospects/ServicesReturn to topWhile the agribusiness industry is not the greatest contributor to the national GDP at 5%,it is a sector with continuous expansion and an average annual growth of 2%. It is alsoresponsible for 9% of the nation’s foreign direct investment. The government’sinvestment plan has provided the sector with over USD $700 million in the past 5 years.Modern Agricultural Machinery: This particular sector presents suppliers with strongopportunities, as 70% of Mexican agriculture is still harvested through manual laborutilizing rudimentary tools. Less than 20% of croplands are irrigated, leaving cropsdependent on seasonal rains or irrigation through mobile water pumps. Federalgovernment infrastructure development programs have provided this sector with USD$300 million for this purpose alone.Fertilizers: Mexico has no national fertilizer industry which results in farmers eitherfertilizing their crops with traditional products or not fertilizing at all. During 2008, farmerscontinued to express their discontent with the high price of imported fertilizers.Affordable fertilizers have strong market potential for U.S. firms in the agricultural sector.
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Return to table <strong>of</strong> contentsChapter 4: Leading Sectors for U.S. Export and <strong>In</strong>vestmentCommercial Sectors• Agribusiness• Automotive Parts and Supplies• Education and Training Services• Energy Sector• Environmental Sector• Franchising Sector• Hotel and Restaurant Equipment• Housing and Construction• <strong>In</strong>ternet and IT Services• Packaging Equipment• Security and Safety Equipment and Services• Telecommunications Equipment• Transportation <strong>In</strong>frastructure Equipment and Services• Travel and Tourism Services• Agricultural Sector
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