MEXICO CITY (AP) — Mexico’s new president announced a new agriculture plan Tuesday that could make the country’s food production and distribution look a lot more like it did in the 1980s, when meals in Mexico were dominated by tortillas, beans and instant coffee and cheap hot chocolate.
Four decades ago, the ingredients for those meals were often bought at government stores that stocked a few basic goods.
President Claudia Sheinbaum pledged Tuesday to revive those often shabby, limited government stores and continue efforts to achieve “food sovereignty.”
“It is about producing what we eat,” Sheinbaum said of her food sovereignty goal, whose main focus will be on increasing bean and corn production.
Sheinbaum appears to have a deep interest in boosting beans. On Monday, she said “It is much better to eat a bean taco than a bag of potato chips.”
Agriculture Secretary Julio Berdegué said the focus would be on guaranteeing prices for farmers who grow corn used for tortillas and lowering tortilla prices by 10%, after prices jumped a couple of years ago.
The government aims to boost bean production by about 30% in six years to replace imports of beans, and will set up research centers to supply higher-yielding bean seeds.
“Self-sufficiency in beans is a goal the president has set for us,” Berdegué said.
The government will also focus on supporting coffee production, but mainly for instant coffee, which it claims is used by 84% of Mexican households. The plan will also seek to support cocoa production, but mainly for powdered baking and hot chocolate, not fine chocolate bars.
The policies appear to run counter to market trends and what Mexican food sales look like today, when consumption of most of the old basics has fallen.
Most Mexicans today shop at modern grocery stores, and consumption of fresh ground coffee, not instant, has increased enormously, accompanied by a boom in specialized coffee chains and shops.
And bean consumption has been dropping precipitously for decades in Mexico. According to the government’s “2024 Agricultural Panorama” report, Mexican consume only about 17 pounds (7.7 kilograms) of beans annually, less than half of the 35.2 pounds (16 kilograms) consumed per year in 1980.
Tortilla consumption has also fallen from nearly 220 pounds (100 kilograms) per capita annually in 2000 to about 165 pounds (75 kilograms) in 2024. Consumers have increasingly taken to bread and other bakery products instead of tortillas.
Apart from the challenge of changing consumer habits, the policy also runs counter to market trends. While some countries are trying to encourage high-value varietal and specialized chocolate strains, Mexico is focusing on the cheapest products.
While chocolate was first exported to the rest of the world from Mexico, Mexico’s own production has fallen dramatically because of plant diseases and a lack of investment. It dropped from almost 50,000 tons in 2003 to about 28,000 tons in 2022.
And while most Mexican homes may have a jar of instant coffee in their cupboards, that’s not where the tendency — or consumer spending — is headed. According to a Technavio industry report, instant products accounted for only about 37% of the sales value of coffee in Mexico.
López Obrador also appears to have passed on his nostalgia for a 1970s-style Mexico — including passenger rail service, state-owned industries, tight-knit families and small corner stores — to Sheinbaum.
Before you make your next trade, you’ll want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now…
See The Five Stocks Here
Click the link below and we’ll send you MarketBeat’s guide to investing in 5G and which 5G stocks show the most promise.