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Mexico looks to Dutch for agricultural boom

Due to geographic and trade agreement advantages, Mexico is enjoying a growing agricultural export sector. While Mexican producers take advantage of emerging opportunities, they're, more and more, turning to the Netherlands as a source for materials and expertise.

According to a report by the Netherlands Ministry of Economic Affairs, Agriculture and Innovation, Mexican imports of agricultural products, inputs and equipment from the Netherlands has grown every year from 2009 through 2011. That's because, the report notes, Mexico is quickly expanding its agricultural export industry and increasingly looking to the Netherlands for the materials and knowledge to accomplish that.



With large amounts of arable land, a mild climate, proximity to the United States and free trade agreements with North American, European and Asian countries, Mexican growers have enjoyed favorable conditions for growth. That's resulted in increased agricultural exports throughout the last decade as well as technological upgrades. From 2008 to 2010, the use of greenhouses in Mexico has grown from 9,900 hectares to 14,800 acres. The report estimates that, if that trend continues, greenhouse use will reach 20,000 acres by 2014. That growth, in turn, is being fueled by Dutch technology.

"Mexico realizes the importance of importing inputs, equipment and machinery, including greenhouses that can highly improve the quality of its fresh produce," notes the report. "Agricultural equipment and greenhouses are by far the most important import products from the Netherlands for this activity," it adds.

The numbers support this, as the value of Mexican imports from the Netherlands rose from 1.5 billion euros in 2009 to 2.2 billion euros in 2011. In line with that, the value of agricultural imports climbed from 114 million euros to 136 million euros during the same time period. That means Mexico is expanding its agricultural industry, and it represents an opportunity for Dutch companies who can provide the inputs necessary for that growth.

"More and more, Dutch companies see the attractiveness of Mexico as a location for their company," states the report. "To both produce for the American market and to sell and give service to Mexico's growing horticultural sector."
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