Currently, 60% of the municipalities in the north of Mexico are suffering severe to exceptional droughts, leading to losses in productivity. These droughts could affect not only crop yields but also the entire fruit and vegetable supply chain for the domestic and export markets, according to information provided by ProducePay, an agricultural California-based fintech active in Mexico.
According to estimates from ProducePay, weather conditions in Mexico could represent losses of up to 12.5 billion Mexican pesos (€ 590 million) a year. According to agricultural information service SIAP, almost 40% of the crops in the Northern states are currently rain-fed. As export crops require modern irrigation methods, this explains why only 3% of the region's total production is actually destined for export.
In September this year, the Dutch Embassy in Mexico is planning to organize a water mission for Dutch companies specialized in water solutions and interested in the Mexican market.
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