What factors have contributed to the growth of the agrochemical industry in Mexico?

The agrochemical industry, specifically crop protection, grew between 3-6% depending on the market conditions. Regarding the fertilizer industry, the market conditions have been affected by international events. While the conflict in Ukraine has destabilized the market, it has not been the only cause. We previously had the pandemic affect to the supply chain, which increased prices. The crop protection industry is an important precursor for the agricultural sector, not only for agriculture but also for livestock. In 2021, we had revenues of US$17 billion, with continuous growth in 2022. Mexico produces an important range of agricultural products given its vast tropical regions, and it is strategically located to meet the market demands mainly to the US.

What are projects that UMFFAAC has in place to continue contributing to the growth of the industry?

One of the core missions of UMFFAAC is to contribute to the growth and development of the agricultural industry through high-quality products and practices, so we are constantly searching for ways to modernize the industry according with our clients demands. We look for ways to educate our partners on state-of-the-art products that are appropriate to their geographies and crops. We also look for economically sustainable products in agreement with the international food safety regulatory frameworks. UMFFAAC also has national campaigns to train our members and farmers on the proper use of pesticides. Lastly, we focus on advocating for common sense of policies and regulations of the agricultural sector at the national level to stimulate agricultural economic growth while meeting international regulatory requirements.

What are the current conditions concerning the use of illegal pesticides in Mexico?

There have not been many improvements on this front, and the issue continues to grow because of the government's inadequate monitoring and response. A recent report showed that there are currently more than US$200 million per year of illegal pesticides used in the Mexican market, which is a huge risk for the country and the agricultural sector. Illegal pesticides are unregulated and often have erroneous labeling, which can lead to farmers misusing the product and causing irreparable damage to their products, consumers and markets. Besides the domestic presence of illegal pesticides, there is the influx of illegal products from Central America, the US and Asia, which further exacerbates the problem. There is also the issue of pesticide theft during transportation with inappropriate care of the product, which is later sold in the black market without proper labeling, further destabilizing the legitimate pesticide market.

As an organization, we have designed national education campaigns to target not only mass producers, but also small-scale farmers to learn about the consequences of the use of illegal pesticides, focusing on the ability to sell their products domestically and abroad. The campaigns include community forums in partnership with state governments. We are proud to reach these small communities because changes begin at the community level.

How has the conflict between Russia and Ukraine affected the agrochemical industry?

The situation in Europe has had a tremendous impact on the industry. Imports from Russia stalled, which caused the price of fertilizer to increase up to 300%, and there was also limited availability of fertilizer. Consequently, the cost of production increased by 40-50%. Many farmers restricted the use of fertilizer, which can lead to a dangerous cycle where there is a decrease of production of various crops that will ultimately lead to loss of profits across the supply chain. Unfortunately, the domestic fertilizer industry has not grown in Mexico, which makes us dependent of other countries. The conflict in Ukraine has showed us the need to invest in this area.

What are the necessary factors to modernize the agrochemical industry in Mexico?

One important factor is facilitating the government bureaucratic processes for the production and use of agrochemicals. It is important to modernize its registration and regulatory processes to better meet the market demands. We work very closely with our members to advocate for the proper use of pesticides, to meet not only national and safety standards, but also international regulations so farmers can provide products that meet the consumer demand with right levels of safety and innocuity. In this sense, there have been cases where products shipped to the US were denied entry or had to be burned due to a chemical analysis revealing the use of an inappropriate pesticide, with negative economic consequences for our farmers. Additionally, it is important to implement state-of-the-art technologies in the production of pesticides and fertilizers to continue being an agricultural leader in the international market.