Recently, the Agricultural and Fisheries Information Service (SIAP by its Spanish acronym) published the data of the Agricultural Closing 2021, information that allows us to know the current situation of agriculture in Mexico, such as which are the agricultural crops that leave more revenue in Mexico.
First, it is important to understand that a good yield does not necessarily imply a good profitability, because there are more factors that affecting the return on investment.
In this sense, we can give as an example the tomato producers in Sinaloa, an entity where the yield in 2021 was 56 tons per hectare, a good yield considering that it is mainly an open field production. With a yield like that we might think that the return on investment is high, but the truth is that, since they harvest most of their tomatoes between November and January, the oversupply causes the price to drop, to the point that over several years farmers were forced to throw away their produce or use it to feed livestock.
Therefore, the profitability of an agribusiness refers to the ability to create an economic benefit, so that, even in the case of obtaining a low yield, you can have good profitability if the product is marketed at a high price, compared to producing a lot but when the market is saturated.
Having explained this, the following are the crops that left more income per unit area (hectare in this case) to Mexican farmers in 2021.
Crops with the highest income
It should be clarified that the data presented refer to the gross profit obtained for each crop, so to obtain the net profit, the expenses inherent to production costs would have to be deducted.
To analyze how much money the crops left in Mexico, we considered the total harvested area in the country and the value of production for each crop during 2021, so that the quotient of the value between the area gives us as a result the value for each hectare harvested in Mexican pesos.
In this sense, the crop with the highest value per unit area in Mexico is agave, leaving 1,225,778 pesos per hectare, followed by eggplant and strawberry with 972,411 pesos/ha and 923,234 pesos/ha, respectively.
|Crops with the highest income per area in Mexico (2021)|
|Crop||Harvested area (ha)||Production value(Million pesos)||Gross return(pesos/ha)|
We can see that this list includes 3 of the berries grown in Mexico, which together constitute the 3rd most exported agri-food product by Mexico, so we can say that berry cultivation is one of the most profitable in the industry.
Also, it is not surprising that tomato appears in this list, since it is one of the most important crops in Mexico, this country being the 9th largest producer and the largest exporter in the world.
In addition, tomato was the 4th agri-food product with the highest production value in Mexico in 2021, followed by agave, pepper, and berries.
High-value crops in Mexico
It is highly curious that avocado does not appear within the first 15 places in this list (it ranked 17th), being a fairly well remunerated product in Mexico.
In 2021, grain corn, avocado and sugarcane were the crops with the highest production value in Mexico, with 148,601, 50,538 and 46,929 million pesos, respectively.
This can be explained by the fact that the yield (production volume divided by harvested area) of avocado is much lower than that of other products such as tomatoes or berries, making it a crop that requires a larger extension than usual.
In Mexico, agave, eggplant and strawberry are the crops that leave more income per hectare harvested, while the crops with the highest production value are grain corn, avocado and sugar cane.
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