Mexico Agribusiness Report Q2 2018
We have made some minor forecast revisions this quarter to account for production variations. Growth rates across thesector will remain steady. We see positive trends in domestic consumption and production in the dairy and livestock sector. Grainyields in the 2017/18 year will be somewhat low owing to baseline effects, but post steady yields. Nevertheless, we are positive thatthe coffee crop will begin to recover as the effects of the roya coffee rust begin to fade away. On the demand side, rising per capitadisposable incomes will continue to deliver demand-side growth, but we hold our opinion that competitiveness remains an issue forthe Mexican agricultural sector as a whole, particularly in the grains, livestock and sugar subsectors.
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