Mexican Agriculture Sector Faces Losses in Late 2023 Due to Currency Exchange

The Mexican economy is gaining international investor confidence, but its agribusiness faces a dual reality. While export volumes to major markets like the United States (US), China, and Europe are growing, the Mexican peso has significantly devalued in recent years. The USD/Mexican peso exchange rate dropped from an average of 20-21 pesos per dollar in 2021 to 16.5-18 pesos per dollar by the end of 2023. This devaluation has led to substantial losses for certain industries, such as avocado exporters to the US, facing over USD 2 billion dollars in losses, and key products like tomatoes, cucumbers, and bell peppers reporting losses of nearly USD 4.5 billion in 2023 compared to previous seasons.