Report Shows Mexican Demand for Missouri Agriculture Products

Demand for Agriculture Machinery, Technologies Strong in Mexico

St. Louis, Mo., June 24, 2009 - A report just released by the U.S. Commercial Service's Mexico office points to agriculture industry export opportunities for U.S. businesses in which Missouri has a strong exporting base.  The report, Mexico's Agribusiness Opportunities, identifies agricultural machinery, technologies, pesticides, animal feed, and packaging equipment as key market prospects.

According to the U.S. Department of Commerce, Mexico is Missouri's second largest trading partner with $1.3 billion in exports representing 10% of total state exports.  In 2008 Missouri exported approximately $157 million in agricultural machinery, $148 million in animal feed, $98 million pesticides, and $11 million in fertilizers to countries worldwide.

The Mexico's Agribusiness Opportunities report notes that there is virtually no national competition for agribusiness technology and equipment in Mexico since 90% of products in these sectors are imported, presenting an enormous opportunity for U.S. firms.  Mexico is enacting steps to increase investments in technology and equipment in order to prepare its agricultural economy for increased competition created by NAFTA and other international competition.

Sectors that have registered the most dynamic growth are the cattle and dairy sectors followed by corn processing and wheat processing. According to the Mexican Secretariat of Agriculture (SAGARPA) each sector will have an estimated growth of at least 2% for 2009, despite the current world economic crisis. This growth stems from growing demand for processed foods and corn for ethanol; this estimated growth translates to approximately $8 billion.

The report recommends how to reach prospective buyers, outlines market issues and obsticles, identifies key methods of doing business, and lists several agriculture-focused trade events.  The entire report may be viewed at www.buyUSA.gov/stlouis in the research section.  Local trade specialists at the U.S. Export Assistance Center in Clayton, Mo. are available to assist companies take advantage of these opportunities.

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The U.S. Commercial Service is the trade promotion unit of the International Trade Administration.  U.S. Commercial Service trade specialists in 107 U.S. cities and in more than 80 countries work with companies to help them get started in exporting or increase their sales to new global markets. Services include world class market research, trade events that promote your product or service to qualified buyers, introductions to qualified buyers and distributors and counseling and advocacy through every step of the export process.

To learn more about how the U.S. Commercial Service can help your company export, contact a U.S. Export Assistance Center near you or call 1-800-USA-TRAD(E).  The St. Louis office is found at www.BuyUSA.gov/stlouis.