Mexico's agricultural community suffers worst drought in 70 years

According to Julio Hernandez, who directs market development programs in Mexico for the US Grains Council, the effects of the drought that Mexico is suffering will be felt for two to three years at least. How this will affect its demands for feed grains is hard to assess, but Ignacio Rivera, the country’s undersecretary for rural development predicted it will lower corn production for the current year to only 19.8 million tons, compared to 21.1 million tons in the 2010/11 calendar year. Current grain shortages could push Mexico’s imports this year above 9.5 million tons of corn and sorghum above 3 million tons, Hernandez said.

“In an attempt to minimise these losses with replanting, the government sent additional water from the reservoirs. Now Mexico is suffering because it doesn’t have enough water in the reservoirs for this year’s crop.” While crop losses are likely to create more demand, the drought-related losses in the livestock sector are a potential offset. Mexico’s ministry of agriculture estimates that 60,000 cattle have died and an additional 89,000 have been culled by producers. Read more ...