Mexico Launches Barley Purchase Agreement


Jan 12, 2023 | Agricultural Markets News

Reading time: 2 minutes

Mexico ranks 31st on the world scale of countries that produce Barley grain used for brewing, which is equivalent to 0.6 percent of global production. According to the USDA, Mexico produced 1,030,000 tons of Barley in MY 2021/2022. The Mexican Bajío region is the country’s main Barley producing area. Barley is commonly produced during the dry autumn–winter season using furrow irrigation with ground water.

To boost the production and marketing of Barley, the Secretariat of the Countryside and the beer companies Grupo Modelo (ABInBev) and Heineken Mexico signed a participation agreement to support Mexican Barley producers. The Secretary of Agriculture and Rural Development, Víctor Villalobos Arámbula, stressed that the Secretariat facilitated the dialogue to give certainty to the planting and commercialization of malting Barley, which represents the economic livelihood of more than 25,000 families of small and medium-scale producers who work in an area of around 235 thousand hectares in rainfed areas of the Altiplano (Hidalgo, Tlaxcala, Puebla and the State of Mexico) and north of the country (Durango and Zacatecas), mainly.

Through this agreement, the Government of the State of Mexico will contribute a part of the cost of the seed and fertilizer; the producers will provide the workforce and complement the payment of inputs, while the companies will sell the certified seed, guaranteeing its quality so that, once harvested, they acquire all the production obtained. It is estimated that at least 500,000 tons will be sold in the subsequent two cycles, said the federal agency. With the National and State Barley Product System’s participation, the purchase of around 310 thousand tons was agreed upon for the 2022 cycle. Another 190 thousand tons are estimated for the 2022/2023 cycle between the two breweries.

In this regard, the Head of the Secretariat of Countryside, Leticia Mejía García, stressed that this agreement is part of the state Government’s commitment to supporting people engaged in agricultural activities, favoring increased production and strengthening alliances, in this case, between malting Barley producers and entrepreneurs in the brewing industry. Leticia Mejía added that the acquisition of certified seed was supported with 10 million pesos in 2022, benefiting more than 600 producers with an area of 5,803 hectares.

On behalf of the producers, the president of the National Barley Product System, Ricardo Canales del Razo, stated that despite the impact generated by inflation, a good agreement was reached, which translates into a win-win relationship for all actors in the production chain, so they are committed to fully comply with the delivery of the agreed volumes and the agreed agreements.

Under this agreement, it will be possible to combine actions to produce and market the malting Barley grain harvested during the spring-summer cycle in the municipalities of Axapusco, Temascalapa, Nopaltepec, Tepetlaoxtoc, Otumba, Hueypoxtla, and San Martín de las Pirámides. During this act, certificates from the Cebadero Mexiquense Agricultural Assurance Fund were also delivered, through which the state Government provides a subsidy of 20 percent of the total cost of insured premiums for coverage of more than 3 thousand hectares of Barley for the spring-summer 2022 agricultural cycle.

Mexico Launches Barley Purchase Agreement

Mexican Barley Import

In 2020, Mexico imported Barley worth $72.7 million, becoming the world’s 23rd most significant importer of Barley. In the same year, Barley was the 461st imported product in Mexico. Mexico imports Barley primarily from: France ($51.6 million), Canada ($11.6 million), the United States ($9.48 million), Chile ($9.97k), and Belgium ($1.73k).

As per AgFlow data, Mexico imported 247,055 tons of Barley from Australia in 2022, followed by Belgium (43,000 tons), France (42,000 tons), and China (35,000 tons).

Other sources: GOB

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