The fruits and vegetable sector is expected to witness a CAGR of 2.3% during the forecast period (2020-2025). Tomatoes, bananas, chili peppers, oranges, lemons, limes, mangos, and avocados are some of the commonly grown fruits and vegetables in Mexico. The country produced 37 million metric tonnes of fruits and vegetables in 2017. The climatic advantages that allow it to produce fruits and vegetables all year round and Increase of demand from the United States are the prime drivers of this sector in Mexico. The country exports almost 28 percent of what it produces and 80 percent of its shipments are sent to the United States.
Key Market Trends
Oranges and Tomatoes Dominates the Sector
Oranges and Tomatoes are the leading commodities in the fruits and vegetable sector, which constitute 23% of the major fruits and vegetables. The country produced 4.7 million metric tonnes of oranges and 4.5 million metric tonnes of tomatoes in the year 2018. Favorable Mexican weather and high export demand for those commodities, especially from the United States are some of the or reasons for such production in Mexico. Sinaloa, Baja California and Michoacán are the major tomatoes producing states in the country whereas Tamaulipas and Veracruz are top oranges producing regions.
United States - Major Exporting Partner
The United States is the top exporting partner of Mexico. The country imported fruits and vegetables worth USD 800 million in 2018 out of which 63% account for vegetables. Avocadoes, strawberry, raspberry, and grapes are some of the fruits exported to the USA whereas bell peppers, tomatoes, and tomatoes are the main vegetables exported. The trade agreement, NAFTA and its location Near to the United States are the prime reasons for such huge exports to the USA. Other prominent trade partners include Canada, Chile, Argentina, and Spain.
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