Mexico Has an Agave Price Crisis Despite a “Boom” in Tequila Exports
Rosario-based pulp and paper manufacturer Celulosa Argentina filed for bankruptcy protection (similar to US’ chapter 11th) after defaulting on its bond payments. The company accused Javier Milei’s government of creating an “extremely adverse economic environment”. The company’s shares fell 17% on the day of the announcement and are already estimated to drop nearly 80% by 2025. The case reinforces the worst wave of corporate defaults since 2020, which is affecting the agricultural and industrial sectors. (Celulosa Argentina SA)
Reports from JP Morgan and Itaú BBA highlight signs of structural improvement in the country: falling inflation, a reduced fiscal deficit, and advances in oil, gas, and mining, which could generate a trade surplus of US$ 6 billion by 2025. Milei’s measures, such as a 30% spending cut and the end of subsidies, have helped curb inflation, but analysts warn that the exchange rate band system is only an emergency solution. (JP Morgan; Itaú BBA)
China has banned imports of poultry and related products from Argentina due to an outbreak of bird flu in the South American country, the Chinese customs administration stated on September 3rd. (Chinese Government)
Business in agriculture is at a standstill following the results of the recent provincial elections. “The Argentine market is completely paralyzed in terms of trading volumes. There are virtually no sales of soybeans, corn, and wheat. It’s normal for farmers and sellers to tend to interrupt or slow down their decisions during such volatile periods, as, with sudden fluctuations in the dollar, there is a risk of underperformance in sales”, said Juan Manuel Uberti of the Grassi brokerage. (Grassi)
The Rosario Stock Exchange projects that corn production in the 2025/26 harvest could reach 61 million tonnes, surpassing the previous record of 52.5 million tonnes in 2023/24. The estimate is contingent on regular rainfall throughout the season. (BCR)
Brazilian Administrative Council for Economic Defense approved the merger between Marfrig and BRF, creating MBRF, a company valued at US$ 28 billion in annual sales. The decision was made in a special session this Friday, September 5th. Questions from competitor Minerva Foods regarding the participation of the Saudi sovereign wealth fund Salic were resolved after a corporate adjustment. The transaction is expected to be completed in September, bringing together brands such as Sadia, Perdigão, Qualy, and Bassi. (CADE)
Chicken meat exports totaled 394.6 thousand tonnes in August (+3.9% y/y), but revenue fell 11.9% to US$ 699.4 million. The Brazilian Animal Protein Association attributes the recovery in volume to the reopening of markets after the lifting of embargoes related to avian flu, with Mexico leading purchases (+873%). So far, in 2025, shipments fell 1.1% to 3.39 million tonnes. Egg exports increased by 71.9% in August and are projected to increase 192% in 2025, with highlights to Japan, the USA and Mexico. (ABPA)
Depleted port infrastructure prevented Brazil from shipping 508,732 60-kg bags of coffee in July of 2025. This prevented the country from receiving US$ 196.05 million in foreign exchange revenue from its trade transactions in July, considering the average FOB export price of US$ 385.36 per bag (green coffee) and the average dollar exchange rate. (Cecafé)
President Luiz Inácio Lula da Silva signed a Provisional Measure on September 5th that releases US$ 2.21 billion for the renegotiation of rural debts. The measure is expected to benefit up to 100,000 farmers, primarily small and medium-sized farmers affected by droughts and floods, offering reduced interest rates (starting at 6% per year) and payment terms of up to nine years. The Treasury will transfer the funds to banks and cooperatives, with the Brazilian Development Bank responsible for structuring the program. (Government of Brazil)
Chinese delegation is expected to visit the State of Rio Grande do Sul to assess sanitary conditions there after an outbreak of bird flu reported by authorities triggered trade bans, according to Gilberto Tomazoni, CEO of JBS. (JBS)
IPAM warns that the Cerrado continues to suffer from accelerated deforestation, including legal clearings, and remains underrepresented in political and climate agendas. Despite hosting 60% of Brazil’s agricultural production and nearly 60% of native vegetation remnants on private lands, the Cerrado biome has already lost 40 million hectares since 1985 and accounts for more than half of all deforestation in the country. Scientists argue that policies for payment for environmental services and mechanisms such as the Conserv program are essential to curb destruction and ensure the long-term competitiveness of Brazilian agribusiness. (IPAM)
Ethanol producer Inpasa will focus on boosting demand in regions such as the North and Northeast of Brazil as it seeks to decentralize the supply of the biofuel, said the company’s vice president of trading, Gustavo Mariano Oliveira. (Inpasa)
National Institute of Statistics, in coordination with the Office of Agricultural Studies and Policies, launched the 2025 National Agricultural Survey on September 8th across 12 regions. The survey will measure the planted area of annual crops, vegetables, and forage, as well as cattle, sheep, and goat herds. It will be conducted in two stages and is expected to generate more comprehensive statistics to support farmers and the design of public policies. Results will be released in the 1H26. (INE; Odepa)
Chile concluded the public consultation for the National Green Cities Strategy, which brought together more than one thousand people and 33 organizations. The plan proposes integrating green infrastructure and nature-based solutions into urban policy, focusing on water management, tackling heat waves, and reducing territorial inequalities. The initiative, supported by the FAO, aims to transform cities into more sustainable spaces. (Government of Chile)
Ten towns concentrate 4.39 million head of cattle, equivalent to 14.6% of Colombia’s national herd. The highlight is San Vicente de Caguán, with 990,000 animals, followed by Paz de Ariporo (551,000) and Cartagena de Chairá (463,000). The survey, conducted by the Colombian Agricultural Institute, also indicates that improved pasture nutrition has boosted production efficiency. (ICA)
The latest edition of Expo Agrofuturo is starting in Medellín, featuring more than 350 exhibitors from 17 countries. According to María Alejandra Madrid, CEO of Agrilink, the event’s organizer, the fair aims to establish itself as a showcase for innovation and sustainability in Colombian agriculture, focusing on carbon-neutral livestock farming, climate-adapted agriculture, digital technologies, and new consumer trends. More than US$ 6 million in business are estimated during the exhibition. (Expo Agrofuturo)
Buffalo farming is no longer “exotic” and is now considered strategic for Colombia’s food security. According to the Colombian Agricultural Institute, the herd has grown 60% since 2018, reaching 617,000 head in 2025. Projections indicate that by 2027 the number will reach 1.6 million animals, a 406% increase. Milk production is expected to increase by 421% and meat production by 204%. (ICA)
Mexico has an agave price crisis despite a boom in tequila exports. The rapid increase in tequila exports, which jumped from 224 million L in 2018 to over 402 million in 2024, has created a rush for agave production in Jalisco and other regions. The number of agave farmers increased from 3,100 in 2014 to over 42,000 in 2024, and the planted area more than doubled. The oversupply has driven the price of agave from 35 pesos per kilo (US$ 1.75) to just 8 pesos (US$ 0.40), below production costs. (Tequila Regulatory Council)
2025/26 soybean harvest is expected to reach 10.58 million tonnes. This includes 9.92 million tonnes from the main crop and 1.29 million tonnes from the already consolidated second crop. The 2026 second corn crop was estimated at 4.85 million tonnes. Analyst Larissa Barboza Alvarez emphasizes that volumes may be revised depending on further confirmation of yields. The market is monitoring weather developments in Brazil, Chinese demand, and US supply, which are decisive factors for pricing. (StoneX Consultoria)
Congress rejected the creation of the Yavari Mirim Indigenous Reserve in Loreto, which was intended to protect 1.17 million hectares of the Amazon, as well as indigenous peoples in voluntary isolation. The decision was criticized by indigenous and environmental organizations, who accuse the government of caving to pressure from the logging and extractive industries. (Peruvian Congress)
The agroindustrial association Sofoval released the first estimate of reference costs for summer crops in the south of the country. The report considers inputs, labor, insurance, freight, and taxes, and highlights that productivity will have to be high for economic viability. Costs range from US$ 367/ha for forage sorghum to US$ 1,181/ha for silo corn, US$ 622/ha for first harvest soybeans, US$ 665/ha for sunflowers, US$ 706/ha for grain sorghum, and US$ 1,004/ha for first harvest corn. (Sofoval)
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