THE MOST PRODUCTIVE SECTORS OF THE MEXICAN ECONOMY | PRIMARY SECTOR. Part 1.

Mexico has a very appealing economy for foreign countries, which generates admiration, bewilderment and surprise in many cases, it all depends on the perspective from which it is viewed, but in no case can it be considered a simple economy, it has very strong particularities that do not appear in the vast majority of the world’s economies.

Figures in Millions of pesos
Source INEGI

For hundreds of years the country’s governments bet (like many in the world) on the development of the primary sector, this is completely understandable since maintaining food security for the population is paramount, adding to the strategic geographical position, which is further strengthened by a great diversity of climates, which facilitate the development of the various activities of the primary sector, as well as being surrounded almost entirely by seas, providing access to an economic activity that many other countries would like. However, the primary sector today does not have the economic importance it should, being the weakest of the three economic sectors.

The subject has been one of the most studied by national and international intellectuals and the main conclusions on which they agree are the following; a) No seed planting planning; studies were never carried out to establish which type of crop is the most profitable and competitive for each of the climates in each region, b) Livestock raising in areas that are not suitable for it, nor with the most suitable climates, which is closely related to the previous one. Most livestock raising is concentrated in the northern states of the country, which tend to have a very sinuous surface due to the mountain ranges, and also with almost desert climates in most cases, which does not favor the growth of pastures, the main source of food for livestock, c) Virtually no investment by the government to develop an aquaculture industry, the government is so focused on continuing to exploit the oil wells in the ocean, regardless of the high cost that this generates, to invest in exploiting one of the largest sources of food worldwide, d) High costs of financing sources to the primary sector by financial institutions, for many it is surprising that even when the national government has not allowed the bankruptcy of any banking institution in the country, they do not bet on risking a little more and offer products at a lower rate, and with more sensitive requirements to the sector, e) Little investment in new technologies to develop the sector, although, as we are in a market economy, the government should interfere little in the economic development of the country, it is of vital importance to encourage investment and technological development in each of the sectors that make up the national economy, f) no support to the sector in export issues, although Mexico is a world power in foreign trade, it is especially relevant to explain that this is not a task of which the national government can be proud, although it is of great merit to sign trade agreements and treaties with practically all the major markets in the world, support for exports to the primary sector has gone from negligible to null in the last decade, The great merit belongs to the entrepreneurs of the sector and to the specialist advisors of the private sector, who have developed and potentiated the sector to bring Mexico’s products closer to the world, g) personnel without preparation or technical training to develop the sector, the field has been considered in the country as one of the most noble and respected activities, however, it is still an activity developed by families, with generational knowledge, transmitted from generation to generation, from parents to children, however, few are those who have developed the technical knowledge that can support them to enhance their crops or raising their animals, moreover, most of the labor force in the sector corresponds to minors or elderly people.

There are many other factors that are considered to justify the development of the sector in the country, but the above are the ones that are most frequently mentioned by experts in the field. Now, why is it important to mention these factors?

Every great businessman or entrepreneur where he finds a problem, sees a business opportunity, and in this sense, the primary sector is one of those that has more investment opportunities in the Mexican economy, most of the technology used in the sector is of European or American origin, with high import costs, The above without even considering the lack of knowledge of the sector’s entrepreneurs, who in many cases are not informed of the latest technological advances in the field, this is emerging as a golden opportunity for technology development companies looking for a fertile field to exploit their business model.

​​The almost non-existent training provides another opportunity for service companies and even educational entities specialized in the sector to develop business opportunities in Mexico directly or through commercial agreements with companies in the industry in Mexico, thus bringing the most advanced technical knowledge that can develop the sector faster.

In the aquaculture sector, the opportunities are enormous, both for financing companies, as well as for boat builders, producers, training companies, and exporters of aquaculture products. This activity has been developed as a family practice that passes between generations, which do not have the capacity to exploit the great resources of our coasts.

The primary sector is a national treasure, not only for what it has been, but also for the enormous potential that lies ahead, which is shown as one of the most interesting for foreign investment.

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