Mexico: Concentration and inefficient subsidies, finds agro industry report

Mexican competition regulator COFECE released their report on an extensive review of the country’s agriculture sector. The report has revealed excessively concentrated markets in seeds, pest control chemicals and machinery. The report also found seriously inefficient subsidies, which mostly end up in richer farmers’ hands. COFECE’s report warns that this situation has caused higher prices for staples such as potato, corn, barley and beans.

Three companies control up to 60% of the seed market, with multinational agrobusiness giant Monsanto alone holding close to one third. The machinery and parts sector is similarly concentrated, with three companies accounting for 91% of total tractor sales.

The report’s recommendations have been passed on to the Agriculture, Cattle, Rural Development and Fisheries Ministry (SAGARPA), where they will be reviewed before being sent on for further consideration by other public bodies.

Source: El Universal / Quadratin

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