Mexican agricultural exports have shined in the first month of the year because of the depreciation of the peso against the dollar and an increase in US demand.
According to data from the National Institute of Statistics and Geography (INEGI), shipments of these products increased by 10.8% annual rate in January and February.
Even though they only account for just over 4% of Mexico's total shipments, in contrast to the 90% stake that manufacturing exports have, agricultural exports increased by more than 22% only in February.
"There was an increase in the value of exports, not in production, because of the exchange rate," said Miguel Gerardo Ochoa, deputy director of analysis in the Instituted Trusts Regarding Agriculture (FIRA), an official institution that seeks to provide access to credit for projects in the sector.
The value of onion and garlic exports increased by 38.9% in the first months of this year despite having shipped fewer tons than last year.
According to the Ministry of Economy, in January this year, Mexico exported 15,598 tons of onions worth a little more than 31 million dollars; while in January 2015, the country exported 17,060 tons and only achieved 21 million dollars.
In that period, the Mexican peso depreciated by 21.37% against the dollar, which made these products more competitive in other countries, particularly in the US market.
"Overall it has had a pretty good performance. In the short term, it's also a consequence of the exchange rate and the US demand. Typically this is where it improves," he said in an interview with Rafael Camarena, an economist at Santander.
Source: expansion.mx