The marketing problems and low prices faced by the Mexican corn industry, combined with lower expected production at the end of the spring/summer and autumn/winter cycles due to the drought that affects the main producing States, such as Sinaloa and Sonora, will have serious repercussions on the agricultural sector, including companies that produce balanced animal feed.

This was warned by Esteban Jaramillo, general director of the National Chamber of Industrialized Corn (CANAMI), when participating in the plenary meeting of the National Council of Manufacturers of Balanced Foods and Animal Nutrition (CONAFAB).

Yellow corn is the main raw material used by the feed industry. However, because national production is insufficient, in 2022 the sector imported around 12 million tons (67% of the grain it occupied), and this year will be no exception.

“We have a significant drought that affects 78% of the country. The expected production in spring/summer 2023 will be reduced by one million tons and instead of 19 million we will only have 18 million; However, the problem will be more severe in the fall/winter, because Sinaloa and Sonora, which are the main producers and use irrigation, have the dams at 28% of their capacity, that is, they have nothing to irrigate with,” stressed Esteban Jaramillo. .

He added that Mexico has a deficit in yellow corn, which is why it imports 40% of the needs, which are equivalent to 18 million tons on average, but next year they could reach 23 million due to the consequences of the drought and lower productivity.

He told CONAFAB partners that the Treaty between Mexico, the United States and Canada will determine whether Mexico is breaching the trade agreement. through the restrictions established in the Decree towards genetically modified corn.

If the non-compliance is resolved, the United States and Canada may determine tariffs on Mexican exports up to the amount they determine of the impact. Tariffs are preferably applicable in the same sector in which the dispute originates and can be applied in other sectors.

In the event that the amount of tariffs is higher than what Mexico considers, the panel may be asked to determine the amount of the impact. The determination of the amount of impact established by the panel must be in force until the controversial Decree is eliminated or modified.

Finally, the general director of CANAMI explained that corn is in the daily lives of Mexicans from dawn to dusk. In toothpaste, shaving cream, ethanol, oils, pet food, the grain has applications in more than 60 industrial sectors. Therefore, it is important to find a solution that does not affect the end consumer.