Unprecedented Agricultural Crisis in Mexico
Inflation reached 2.1% in September and 31.8% over the past 12 months, according to the National Institute of Statistics and Census. Argentina faces political and currency turmoil while President Javier Milei seeks support from the USA and IMF to curb the peso’s devaluation and stabilize the economy after deep spending and subsidy cuts. (Indec)
New H5N1 avian influenza outbreak in domestic birds in Buenos Aires province. The case occurred in a rural property in San Andrés de Giles, where 19 birds were culled, according to the National Service of Agrifood Health and Quality. Authorities are disinfecting affected areas and maintaining the animal health emergency extended for another 180 days. (Senasa)
Lamb Weston, one of the world’s largest suppliers of pre-fried frozen potatoes, has started operations in a 40,000 m² plant in Mar del Plata, with a processing capacity of around 90,700 tonnes of potatoes per year. The US$ 240 million investment will allow the company to export 80% of its production to Brazil and other Latin American markets. The facility, which created 250 direct jobs, was designed to reduce waste and energy consumption. (Lamb Weston)
Drought risk rises with the return of the La Niña phenomenon to Argentina, where the climate pattern may trigger heat waves and curb soybean and corn yields. Although the event is expected to be mild, analysts warn that its effects on the Pampas region could strain the country’s foreign exchange inflows. Previous La Niña episodes in 2018 and 2023 caused severe agricultural losses. (NOAA; BCR)
Rice exports rose 91% in 2025, the strongest growth among grains, according to the Buenos Aires Grain Exchange. The country exported 702,000 tonnes between January and August, driven by higher production and demand from Brazil and Chile. (Buenos Aires Grain Exchange)
Argentina’s beef exports grew by 20% in 2025, totaling US$ 2.25 billion, according to the Argentine Beef Promotion Institute. Growth was driven by stronger demand from China, the European Union, and Chile. Shipped volume exceeded 600 thousand tonnes, with average prices 7% higher than last year. (IPCVA)
The future of wheat from Argentina lies with Brazil, not Europe, analysts from the Rosario Board of Trade state. Brazil accounts for roughly 70% of Argentina’s wheat exports, benefiting from proximity and product quality. Limited European demand and currency volatility reinforce Argentina’s dependence on the Brazilian market. (BCR)
The National Congress canceled the session that would analyze the vetoes to the General Environmental Licensing Law, scheduled for October 16th, 2025. The postponement was requested by the government leadership, according to Senate’s President Davi Alcolumbre. A new date for voting has not yet been set. The Bill is considered a priority by agribusiness and infrastructure sectors, which advocate for reduced bureaucracy in licensing. Environmental groups, however, warn against excessive deregulation. (Agência Senado)
Agribusiness in the State of São Paulo recorded a surplus of US$ 16.81 billion from January to September 2025, with exports of US$ 21.15 billion and imports of US$ 4.34 billion, according to the Agribusiness Research Directorate of the State of São Paulo’s Agency for Agribusiness Technology. The sugar-alcohol complex led exports with US$ 6.32 billion, followed by meats, forest products, juices and soybean. Sales to the USA decreased after the 50% tariff, with shipments redirected to China, Mexico and Argentina. (APTA)
Brazil is expected to harvest a record 177.6 million tonnes of soybean in the 2025/26 season, about 6 million more than the previous season, according to the National Supply Company. Planted area grew 3.6% to 49 million hectares and exports may exceed 112 million tonnes, driven by reduced U.S. shipments amid the trade war with China. (Conab)
SLC Agrícola expanded the company’s regenerative farming certified area to 181.5 thousand hectares under the international program “Regenagri”, targeting 485 thousand hectares by 2029, about 70% of its total production area. At the same time, the company forecasted a 13.6% increase in planted area for the 2025/26 season, with corn up 28.9%, soybean 13.8% and cotton 11.7%. Production costs are expected to increase around 10%, up to US$ 1,300 per hectare, mainly due to higher spending with fertilizers. (SLC Agrícola)
Public Prosecutor’s Office of the State of Paraná charged businessman Celso Fruet, 72, for defrauding at least 120 farmers in Campo Bonito, western Paraná State. After selling his grain company to a cooperative, he continued trading grains without payment, illicitly obtaining US$ 3.72 million. Fruet is a fugitive and has an arrest warrant issued against him. (MPPR)
Average price of paddy rice fell to its lowest level since September of 2011. Limited access to credit and prices below production costs are discouraging growers. (Cepea/Esalq)
Federal Government has launched the Provisional Measure No. 1314/2025, establishing special conditions for restructuring and settling rural debts of farmers and cooperatives affected by droughts, frosts, floods and storms between 2020 and 2025. The program targets Pronaf – National Program for Strengthening Family Agriculture and Pronamp – National Program for Support to Medium-Sized Farmers credit lines, which provide subsidized financing to small and medium-sized farmers. It offers annual interest rates ranging from 6% to 10% and repayment periods of up to nine years, aiming to offset climate-related losses and restore farmers’ investment capacity. (CMN)
Colombian Seed and Biotechnology Association called for wider adoption of certified seeds to boost productivity and food security. According to the Colombian Agricultural Institute, only 22% of rice, 12% of soybeans and 10% of potatoes use certified seeds, compared with 87.5% in corn. The group urges updated regulations and stronger support for agricultural innovation. (ICA; Acosemillas)
The Government launched three national conservation projects: MEx30x30, which aims to protect 30% of the territory by 2030; ACCIÓN, focused on climate adaptation and protection of coastal ecosystems in the Yucatán Peninsula; and ORIGEN, dedicated to environmental restoration and sustainable farming practices. The initiatives are funded by the Global Environment Facility, the Green Climate Fund and Germany’s KfW bank, implemented by the Mexican Fund for the Conservation of Nature and coordinated by the Ministry of Environment and Natural Resources. (Semarnat)
Unprecedented agricultural crisis is hitting Mexico, according to rural associations and economists. Declining profits and rising production costs are affecting small and medium-sized farmers of corn, wheat and beans. Organizations warn of weakened public policies and reduced federal budgets for agriculture. (GCMA)
Farmers staged protests and road blockades in over 20 states, including Sinaloa, Sonora, Jalisco and Guanajuato, in reaction to falling grain prices and limited government support. The Ministry of Agriculture and Rural Development set up working groups to address demands for subsidies and financing. The Senate is urging immediate action to prevent further deterioration of the rural sector. (Sader; Senate of the Republic)
Average price of beef exports reached US$ 6,062 per tonne by September, up 18.8% year-on-year, according to the Central Bank of Paraguay. Total exports reached US$ 1.56 billion, a 27.8% increase, with a 7.6% rise in shipped volume. Chile remained the top market, followed by Taiwan and Israel, which paid the highest average price (US$ 6,501/tonne). The upward trend reflects the stronger international demand and rising value of premium cuts in high-income markets. (BCP; Senacsa)
Vladimir Germán Cuno Salcedo was appointed as Minister of Agrarian Development and Irrigation by President José Jerí. (Midagri)
Peru recorded significant progress in the fruit sector. According to the Hass Avocado Farmers and Exporters Association, the 2025 season reached exports of 690,000 tonnes, an increase of 37% from the previous year. Europe, Japan, the USA and China were the main destinations. Blueberry exports increased 92.9% from May to September, reaching over 135,000 tonnes, according to the National Agrarian Health Service. Strawberry exports also stood out, reaching 17,600 tonnes by September, a 57% increase driven by access to the Brazilian market. (ProHass; Senasa)
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