A little more will be coming from Brazil. A little more will be coming from Brazil.

MX negotiates deal to buy Brazilian corn

Mexico looks for alternatives to buying US products

Mexican livestock producers have closed a deal with Brazilian yellow corn producers through which record amounts of the crop will be imported from the South American country.


An official with the federal Agriculture Secretariat (Sagarpa) who visited Brazil last week as part of a delegation of livestock producers said several Mexican firms were able to negotiate directly with Brazilian suppliers, bypassing firms such as Louis Dreyfus Company and Cargill,which usually agree on terms on behalf of both parties.

“If prices become even more attractive, [the Mexican firms] could start importing even more,” said Alejandro Vázquez Salido, adding that in some regions of Brazil yellow corn can be purchased at lower prices than those found in the United States, the main source of the yellow corn used to feed livestock in Mexico.

Higher prices and longer shipping times have limited imports from Brazil for years. Before the visit by industry representatives, the prize per tonne of Brazilian corn was some US $15 higher than United States-grown corn.

In the new deal, which will consist of two 30,000-tonne shipments to be delivered in August, the prices were only between $3 and 5 higher.

These first shipments are part of an accord signed with Brazilian producers to import a total of 300,000 tonnes at the same advantageous prices.

The amount is minuscule compared to the 12.75 million tonnes of yellow corn Mexico imported from its northern neighbor last year, remarked Vázquez, but it also is five times the amount imported from Brazil during the same period, “a record volume.”

A rise in U.S. protectionist sentiments and threats against Mexico’s trade with the U.S. have pushed Mexican authorities to explore trade opportunities farther afield.

Source: El Financiero (sp)

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  • jdwfinger

    Why not?

    • philip Stewart

      When the treaty was originally implemented the US was suppose to provide funds/training to Mexican farmers to learn to grow alternative crops. The US never followed through. Just another broken promise. Cheap corn from Iowa subsutised by the US government screwing Mexico again!

  • K. Chris C.

    “This just in! Mexico has WMDs and Niger ‘yellow-cake.’ Operation ‘Mexico Freedom’ is to be launched if Mexico doesn’t relinquish their stocks of WMDs and ‘yellow-cake’ by Tuesday next week. Stay tuned for more.”

    An American citizen, not US subject.

  • miabeach

    Maybe all the Mexicans will sneak into Brazil and work their crops for awhile.

  • This is good news. Expand our sources. I like it.

  • cooncats

    I have to ask again, why is Mexico with all this rich farmland and people needing work importing a core staple like corn in these quantities?

    Also, just what is the benefit of taking potshots at your biggest customer and one that your country enjoys a fiscal surplus of up to $200 billion depending on source of estimate and included items?

    I don’t get it on both accounts.

    • Joseph Kel

      Mexican farmers, by NAFTA accords, are required to use GMO corn seeds. The GMO does not reproduce itself, so seed for the next year cannot be saved. Even if cross-polinated with national strains and grown, it is a violation of agreements and the farmers can be punished by lawsuits, fines, destruction of their crops. U. S. corporate greed is the cause for the need to import yellow corn form elsewhere.

      • csb4546

        “U. S. corporate greed is the cause for the need to import yellow corn from elsewhere.”
        Can you explain? Why did Mexico sign NAFTA if it meant the demise of Mexico’s corn farmers?

        • Carlos Weaver

          Where i live in Mexico the corn is grown on small family plots of land and manual labor is used. I am now just beginning to see some tractors and other equipment. I’m sure that there must be big mechanized farms in Mexico elsewhere. Corn from the US is highly mechanized and can be imported sold in Mexico at below the cost of manually produced corn. I just read that 97% of the corn produced in Nebraska is exported to Mexico. Some times a country is between a rock and a hard place on what is the best overall decision to make. The lowest corn price generates the lowest food cost for everyone.

      • Dallas Autery Y Rocio Heredia
  • csb4546

    12.75 million tonnes of yellow corn Mexico imported from the US last year.
    .30 million tons now purchased from Brazil – over several years.
    Why not more?

  • csb4546

    Mexico needs to invest to become a competitive agricultural power. After developing this capability, ban imports that compete with Mexican products – even if they’re cheaper.
    Importing 80% of its national staple (corn) is absolute insanity. Mexicans should demand Mexican corn.

  • csb4546

    Terrible – the Mexican government must defend its industries and workers against cut-price foreign competition, like all countries do.