Security Concerns Drive Up Farming Costs in Mexico

The escalating insecurity in Mexico is becoming a pivotal factor in inflating agricultural prices, directly impacting the agroindustry and consumers' pockets. According to the National Agricultural Council (CNA), organized crime and common delinquency are imposing significant additional costs on agricultural and livestock producers. They are compelled to invest more in security or suffer direct losses due to thefts and extortions. This growing concern is impacting the dairy economy and the entire primary sector.

The problem extends beyond the loss of crops or livestock. Producers face extortions, theft of machinery, supplies, and even the transportation of their products. Such crimes exponentially increase operational costs, which inevitably transfer to the final price of food. For the dairy industry, this translates to increased costs in feeding cattle or distributing milk, affecting profitability and competitiveness.

Moreover, the insecurity not only disrupts profitability but also discourages investment in the agricultural sector. Many producers hesitate to expand operations or adopt new technologies due to the constant threat of losing their assets. This impedes growth and modernization of food production, detrimental to the country's food security and international market standing.

The CNA has issued an urgent appeal to the authorities to strengthen security strategies in rural areas and highways. Guaranteeing the rule of law in the countryside is crucial for producers to work without fear and additional financial burdens imposed by crime. A safe environment forms the foundation for the recovery and sustained development of the Mexican agroindustry across its various sectors.