MEXICO CITY, MEXICO — Mexico is expected to increase total oilseed production by 2.6% in 2022-23 due to a slightly higher planted area, according to a report from the Foreign Agricultural Service of the US Department of Agriculture (USDA).
Production is estimated at 402,000 tonnes, with soybeans accounting for 300,000 tonnes of that estimate.
Private analysts said because of the cancellation of support by the government through its agricultural programs, planting intentions will increase only slightly or stay flat.
“This factor, along with substantial increases in input production costs such as fertilizers, herbicides, electricity fees and gasoline prices, among others; as well as the insecurity in the countryside are discouraging growers from planting oilseeds,” the USDA said.
Oilseed crushing is forecast to increase 2.9% despite an expected slowdown in the Mexican economy. The increase is driven by demand for meals in the livestock sector, stable population growth and the gradual recovery of hotels, restaurants, theaters and more.
Total consumption of oilseed products is expected to increase 2.7% because of the economic slowdown and relatively sluggish demand triggered by persistent inflation.