Argentina has unlocked a fresh route for its burgeoning barley exports, following three years of trade negotiations with Mexico. The Argentine National Service of Quality and Agri-Food Health (SENASA), in collaboration with the Ministry of Foreign Affairs and Mexico’s Ministry of Agriculture & Rural Development (SADER), has facilitated this crucial deal.
Over the last two decades, Argentina has managed to increase its barley production by a staggering fourfold. SENASA stated, “Barley exports represent 1.8% of domestic exports with US$1.6 billion and a percentage variation of 70.5% between 2021 and 2022. Last year, it was only surpassed by lithium exports, which recorded 236.2% growth, and oil complex products that reached 78.5%.”
Traditionally, China has been the primary market for Argentine barley, importing over US$654 million worth in 2022. In the same period, Mercosur countries, led by Brazil, accounted for 94.4% of the region’s barley exports with purchases worth US$576 million.
This new deal puts Mexico, a global leader in beer exports, in a promising position. As reported by MBN, Mexico’s beer industry recorded over US$6.03 billion in exports in 2022, outpacing berry exports which stood at US$1.3 billion in Q1 2023. The country’s demand for barley is underscored by the $145 million spent on imports in 2022.
Currently, Mexico stands 33rd in the world for barley production, supporting an average of 34,531 producers. Key production regions include the Bajio area (Guanajuato, Queretaro, and Michoacan), the Altiplano (Hidalgo, Puebla, Tlaxcala, and the State of Mexico), and the north (Durango and Zacatecas). Hidalgo leads in domestic production with an average cultivation area of 6.2ha.
This new deal not only strengthens Argentina’s export profile but also significantly supports Mexico’s thriving beer industry, benefiting consumers, producers, and the broader global supply chain.
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