While much of the analysis on the topic of relocation has focused on the potential growth of the manufacturing sector, agriculture could also benefit from this phenomenon.
This is the stance of Santander, the bank led by Felipe García Ascencio, in its latest Nearshoring Data Monitor report.
According to the bank, the agricultural sector with relocation could expand its exports through a production model that has been strengthening in recent years with the opening of the economy, leading to faster growth in the primary sector than the economy's average.
Rodolfo Hernández Sada, Executive Director of International Business and Agribusiness at Santander Mexico, sees the great opportunity in the growing agricultural trade with the United States. "The United States is the world's largest agricultural producer, but its food imports have already surpassed its exports," says the executive.
Hernández explains that the availability of land and competitive labor and transportation costs make it attractive for multinational companies to invest in Mexico.
Santander Mexico will allocate three billion pesos for the remainder of the year to support the SME segment, both in its agricultural activity and in the export sector. He adds that Santander, without much fanfare, is the second bank with the largest portfolio directed to the field, with around 53 billion pesos.
According to the Nearshoring Data Monitor, while the United States increases its imports of agricultural products, Mexico is already the third-largest supplier of these products, accounting for 31 percent of the total, equivalent to 44.2 billion dollars annually, generating a foreign exchange amount surpassed only by remittances.
In our country, agriculture represents 3.4 percent of GDP and employs 11.8 percent of the economically active population, so according to Santander, connecting this sector with nearshoring would impact employment levels and quality, counteracting migration to the United States.
THE MONEY ROUTE
Among the firms awarded the Socially Responsible Company (ESR) badge, note Grupo México Infrastructure for its best practices in social, environmental, and governance matters.
Among the sustainability initiatives evaluated by the Mexican Center for Philanthropy (Cemefi) for this recognition, note Casa Grande Móvil, a mobile community center that serves as a linking tool with 62 localities in Guanajuato; the Combined Cycle plant owned by the company has accumulated over three thousand days without accidents; and the strategy to reduce greenhouse gases with the El Retiro wind farm, which has a capacity of 74MW and supplies energy to Grupo México's railway and mining subsidiaries.
BY ROGELIO VARELA
ROGELIOVARELA@HOTMAIL.COM
@CORPO_VARELA