United States grown soybeans are already among the top exports to Mexico, and the future may be even brighter. This makes sense given the duty-free trade status the U.S. has with Mexico courtesy of the North American Free Trade Act. As the United States Department of Agriculture’s Foreign Agriculture Service’s Mexico Agriculture Economy and Policy Report from February, 2009, shows, this has been good for soybean as they are “one of the most important exports in terms of sales.” To read the report click here.Perhaps the biggest potential growth opportunity for US soybeans is about to blossom thanks to the emphasis in Mexico on growing the country’s fish farm industry. As Ken Anderson reports for Brownfield Ag News, Mexico increasing its fish farm industry should be good for U.S. soybean producers because of the increased demand for soybean meal. Fish farmers in American may not be as excited as the increased demand on soybean meal could also lead to increased costs for them.
Anderson reports that Francisco de la Torre, a coordinator of aquaculture projects in the Caribbean and Latin America for the U.S. soybean industry, says the Mexican government is encouraging increased production, particularly of tilapia, primarily for the United States where annual tilapia consumption has increased by 15 percent. According to De La Torre, Latin American and Caribbean producers will use 200,000 tons of soybean meal by the end of this year, and he expects that number to grow to roughly 500,000 tons in five years.
De La Torre believes the increase use of the soybean meal for the growth in aquaculture is due, in part, to the fact that the Mexican government is subsidizing the fish farm industry. Farmers can get grants of up to 50% , and then low interest loans to cover the rest of the costs for aquaculture projects. To read the Anderson story click here. For an in depth report on aquaculture in Mexico, visit the website of Food and Agriculture Organization of the United Nations.
Posted: 07/22/09
