U.S. ag exports to Mexico busted all-time records in 2021, according to USDA reports. A recovery from 2020 pandemic lockdowns and high global commodity prices helped values, as well as quantity, increase in 2021. For 2021, the U.S. agricultural exports to Mexico totaled $25.5 billion, up nearly 40% from $18.3 billion in 2020.
Export gains were led by grains, dairy products, meat, fresh fruit, processed vegetables and fruit, and condiment and sauces. Exports of fresh fruit rose 37% to $748 million, up strongly from $545 million in 2020. U.S. fresh vegetable exports topped $238 million, up 3% from $231 million in 2020.
Record processed vegetable trade was driven by quantity and value increases in frozen potato products ($261 million), which reflected a reopening of the restaurant and hospitality sector after a challenging 2020.
Strong U.S. apple ($349 million) exports led to growth in the fresh fruit sector. Orange and tangerine exports ($29 million), were driven by high demand for products containing vitamin C during the COVID-19 pandemic. Cherry exports ($16 million) increased an impressive 235% from 2020.
Record growth in the organic category was fueled by both retail and restaurant demand for fresh organic fruit (apples, grapes, pears, peaches and others), as well as lettuce and spinach. Baby food and other organic processed products also saw significant growth.
"Higher-income consumers in Mexico are willing to pay a premium for USDA organic products with the hopes of attaining better health and food safety benefits – a trend the pandemic has bolstered,” according to the USDA report.
Editor’s Take:
It is encouraging to see growth in export value and volume with our neighbors to the south. While difficult to pinpoint how much was directly a result of the new USMCA agreement, there is no doubt it played a significant role. Also, as is often the case, as consumers’ incomes rise, they are willing to spend more for higher quality and healthier foods – such was the case with Mexico. It is also important to note that imports from Mexico to the U.S. were also up in 2021. Overall, U.S. producers realized more income from exports to Mexico and, as a result, were able to purchase more trucks from CAD members and take advantage of AgPack!
