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Strategies to achieve a renewed and sustainable agri -food sector in Mexico

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In , the agri - sector Face structural challenges to transform into a more dynamic, renewed and sustainable industry. Currently, one of the biggest challenges lies in establishing adequate risk management and management systems, implementing optimal water management practices, and developing a sustainable bioeconomy in the countryside

Addressing these issues is essential to the productivity, resilience and competitiveness of the field, while guaranteeing the sustainability of natural resources and the well -being of rural communities.

Within the framework of Business Summit 2025 Agribusiosorganized by Deloitte, highlights the need to adapt the sector to the challenges of climate , the shortage of natural resources and soil degradation, which hinder the growth of the agricultural border and require technological innovation.

On the other hand, specialists agree to the importance of Modernize agri -food systems to improve productivity and sustainability. Irrigation technification and the improvement of agricultural infrastructure are key to face water challenges, which is crucial for agriculture in Mexico.

Keys to the future of the agri -food sector in Mexico

Financing and risks

Solid financing and effective risk management are the basis of a dynamic agri -food sector. In Mexico, historically there were specialized public institutions to support the countryside.

However, in recent years several of these institutions have stopped operating, leaving an important vacuum in rural .

Low financial inclusion shows the urgency of designing innovative financing schemes for the sector.

To correct the lack of credit, a comprehensive strategy that involves both the public and private sector is required. The authorities have indicated that the financial inclusion of agriculture is an unavoidable and social imperative.

In that sense, instituted trusts in relation to agriculture (FIRA) has expanded its scope, supporting small producers with millions of microcredits and programs such as guarantee .

Likewise, the remaining banks and new guarantee instruments must be coordinated with commercial banking to serve producers who were left without financing after the extinction of the FND.

He National Agricultural Council (CNA) He has also taken letters in the matter. For example, in 2022 the CNA and BBVA Mexico signed an to boost credit to the agri -food sector, with adapted financing schemes that help agricultural companies to travel to more sustainable production systems.

This public-private alliance seeks to strengthen the banking presence in the field and support viable projects of producers of various sizes, contributing to close the credit gap.

In addition to credit, it is crucial to manage the risks inherent to agricultural activity. Agriculture faces climatic risks such as droughts, floods, frosts and market risks such as volatility of supplies and crops.

Mexico faces significant challenges due to outdated regulatory frameworks that do not to technological advances. Photo: Freepik

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Towards a financing system for agri -food

A of experts made up of specialists from the agri -food sector highlights the main challenges of the Mexican agri -food sector, focused on the financing.

The specialists agree that the difficulties related to the lack of infrastructure and the current financial system fails to reach those who need it most. In addition, it suggests that collaboration between the public and private sector could improve the efficiency of the system.

They also call for different sectors of society to together to implement changes, highlighting the importance of civil society and cooperation between different parts of the .

To correct the lack of credit, a comprehensive strategy that involves both the public and private sector is required. Photo: Freepik

Water Resilience

Water security is critical for the sustainability of agriculture in Mexico. The country faces a high water stress situation, exacerbated by climate change. In 2023 the warmest year in recent history was recorded, and in 2024 a serious water crisis significantly affected the agricultural sector.

The reduction of at the beginning of the year diminished production in several regions, decreasing the surfaces planted with basic crops such as corn and sorghum. These increasingly frequent drought episodes, sometimes followed by floods, highlights the vulnerability of the Mexican field to the .

The Climate volatility It translates into lower crops, loss of income for farmers and increases in food prices, threatening food security. Achieving water resilience implies that the agri -food sector can overcome water scarcity and climatic variability, maintaining its productivity.

For this, it is a priority to optimize the use of water in agriculture and adapt to the new conditions. Currently, agriculture consumes about 76% of the water available in the country.

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But much of that resource is used inefficiently. Mexico, despite being the sixth country with the most irrigation surface in the , records up to 40% water waste in obsolete channels and irrigation systems.

Aquifer overexploitation is another alarm signal: the country is the fourth largest groundwater extractor worldwide, which is not sustainable.

These figures show the need for Modernize water infrastructure and irrigation practices To do more with less water. A key strategy is irrigation technification. This covers from the rehabilitation of channels (ease or coating with concrete to reduce leaks).

Guarantee water resilience through efficiency in the use of water and robust governance will care of the most critical for agriculture: water. Photo: Freepik

Ensure water for the agri -food sector

A group of water issues highlights that the challenges and solutions to improve water efficiency. These are:

  • Water governance and management challenges: The lack of an effective water governance system in Mexico stands out, with government agencies that are not operationally linked to the basins and that faces deficiencies in the monitoring and control of water resources.
  • Poor water infrastructure: Although Mexico has a significant infrastructure for irrigation, many irrigation districts operate with obsolete technologies and have low levels of efficiency, wasting large amounts of water. In addition, the lack of trained personnel and the absence of an updated cadastre in the irrigation modules contribute to poor management.
  • TECHNOLOGICAL SOLUTIONS PROPOSAL: Panelists suggest that technology, such as real - monitoring systems and telemetry, can significantly improve water management. These systems would allow greater transparency and efficiency in the use of water, in addition to helping the of farmers, who are often reluctant to technological change.
  • Private sector participation: The need for a closer collaboration between the public sector, private companies and farmers is emphasized. The large companies in the agri -food and technology sector have a crucial role in the investment and the impulse of technological innovation that allows a more efficient management of water resources.
  • Policies and subsidies review: A review of subsidy and rates policies is proposed, which currently encourage low efficiency in water use.

Bioeconomy

Bioeconomy is presented as an innovative model to achieve sustainable rural development in Mexico. In essence, the agricultural bioeconomia It seeks to travel to an economy based on biological knowledge, where the use of natural resources is efficient and does not exceed the regeneration capacity of ecosystems.

This implies taking advantage of biomass and residues of agricultural production, generating new products and value -added services, while the pressure on the pressure on the Biodiversity, soils and aquifer mantles.

For a megadiverse country such as Mexico, with a rich basis of biological resources, bioeconomy represents a great opportunity for Diversify the rural economyraise competitiveness and at the same time conserve the environment.

A concrete example of the possibilities of bioeconomy is the use of agricultural waste that is currently wasted. Mexico produces between 25 and 30 million tons per year of corn, which leaves 2.6 to 3.3 million tons of residual biomass (stubble) each year with potential for use.

Instead of burning these waste (polluting practice) or leaving them underutilized, they could be transformed into inputs for bioindustrias:

  • Bioenergy generation (biofuels, biogas)
  • Biofertilizantes production
  • Obtaining biodegradable materials

There are already initiatives in this regard; For example, polymers have been developed from avocado seed, bioplastics, and uses of the agave and cane bagasse to produce paper.

Even food waste can be reinserted in the economy, 280 thousand tons of banana that are discarded a year in Mexico could become flour, biodegradable paper or bioethanol.

Climate volatility translates into minor crops, loss of income for farmers and increases in food prices, threatening food security. Photo: Freepik

Sustainable Development Model for the Mexican countryside

The specialists underline that agricultural bioeconomy represents the transition to an economy based on biological knowledge, where the use of natural resources is maximized without compromising their regeneration capacity.

In the Mexican context, this strategy focuses on Take advantage of agricultural waste to create new sustainable businessesthus strengthening Mexico’s position as leader in biodiversity and international .

One of the critical aspects of the agricultural bioeconomia It is the reduction of food waste. In Mexico, as in many countries, tons of agricultural products are wasted annually due to aesthetic or standards.

This loss not only negatively impacts the economy and the environment, but also represents a missed opportunity to generate income and feed more people.

As a conclusion, building a more dynamic, renewed and sustainable agri -food sector in Mexico is a multidimensional project that demands simultaneous advances in financing, water management, technological innovation and care.

The points analyzed in the forum show complementary routes towards that goal. On the one hand, strengthening risk financing and management systems will allow producers to invest in improvements and innovations, raising the productivity and stability of their income.

On the other hand, guarantee the Water Resilience Through efficiency in the use of water and robust governance, the most critical input for agriculture: water will take care of. Ensuring that sector growth does not compromise water resources or leave communities without access.

Likewise, governance and adoption of technology in water management and other inputs will ensure that scientific solutions are effectively implemented in the field, with the participation of all actors and with updated normative frameworks.

Finally, promoting rural bioeconomy offers a vision of the future in which the Mexican country climatic and environmental objectives.

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