Mexico's Agriculture Plan Aims to Revive 1980s Food Production and Enhance Sovereignty

Mexico's new president, Claudia Sheinbaum, has introduced an agriculture plan reminiscent of the 1980s. This initiative aims to revive government stores that once sold basic goods like tortillas and beans. The focus is on achieving "food sovereignty" by increasing domestic production of these staples. "It is about producing what we eat," Sheinbaum stated, emphasising the importance of boosting bean and corn production.

Focus on Bean and Corn Production

Agriculture Secretary Julio Berdegué highlighted efforts to support farmers by guaranteeing prices for corn used in tortillas. The goal is to reduce tortilla prices by 10% after recent increases. The government plans to enhance bean production by 30% over six years to reduce imports. Research centres will be established to develop higher-yielding bean seeds. "Self-sufficiency in beans is a goal the president has set for us," Berdegué mentioned.

Support for Coffee and Cocoa

The plan also includes supporting coffee production, particularly instant coffee, which is used by 84% of Mexican households. Cocoa production will be encouraged mainly for powdered baking and hot chocolate, rather than fine chocolate bars. These policies contrast with current market trends, where fresh ground coffee consumption has surged alongside specialised coffee shops.

Challenges in Changing Consumer Habits

Despite these efforts, changing consumer habits remains a challenge. Modern grocery stores dominate shopping habits, and bean consumption has significantly declined over the decades. Mexicans now consume only about 7.7 kilograms of beans annually, compared to 16 kilograms in 1980. Amanda Gálvez from Mexico's National Autonomous University noted that beans are often viewed as "the food of the poor," despite being a good protein source.

Tortilla consumption has also decreased from nearly 100 kilograms per person annually in 2000 to about 75 kilograms in 2024. Many consumers now prefer bread and bakery products over tortillas. This shift poses a challenge to the government's policy, which aims to revive traditional food staples.

Impact on Chocolate and Coffee Markets

Mexico's focus on cheaper cocoa products contrasts with global trends favouring high-value chocolate varieties. The country's chocolate production has dropped from nearly 50,000 tons in 2003 to around 28,000 tons in 2022 due to plant diseases and lack of investment. Although instant coffee remains popular in Mexican homes, it accounts for only about 37% of the sales value of coffee in Mexico, according to a Technavio report.

Sheinbaum's emphasis on self-sufficiency extends beyond agriculture to oil and energy sectors, continuing the legacy of her predecessor Andrés Manuel López Obrador. His nostalgia for a bygone era of state-owned industries and small corner stores seems to influence Sheinbaum's policies as well.

The new agricultural plan seeks to balance tradition with modern consumer preferences while addressing economic challenges in Mexico's food sector.