According to the Bank of Mexico (Banxico), the drought exposure indicator reached peak levels in September, which had significant repercussions on agricultural production.

The avocado, highly valued in the international market, has been especially affected by the effects of climate change, while corn, a staple in the Mexican diet, has also suffered the consequences of adverse weather conditions.

Banxico's third-quarter Regional Economies report highlighted that August and September were critical months for agriculture due to the intense heat that affected key agricultural products. Alejandrina Salcedo, Director General of Economic Research at Banxico, stated that "the drought indicator allows us to have more information about the conditions in areas where these products are grown, and in the third quarter we saw high levels, which we believe is related to the effects of climate change."

Although there was a decrease in heat exposure in several crops during October and November due to a decrease in drought conditions in some regions, such as Jalisco, Sinaloa and southern Michoacán, the situation persists in municipalities in northern Michoacán, an important avocado and strawberry producing region.

Furthermore, in response to these adverse weather conditions, a change in agricultural production has been observed, with an increase in the planting of alternative crops such as agave and forage maize in some drought-affected areas.

In this context, the heat waves have created opportunities for certain business sectors, such as the increase in barley planting in the central region. This has been facilitated by pre-existing agreements with breweries and by the appreciation of the peso against the dollar, which has allowed for a reduction in the cost of agricultural inputs such as fertilizers.

Source: https://expansion.mx/economia/2023/12/18/maiz-aguacate-resienten-sequia-en-mexico