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Q&A > Francisco Javier Mayorga - Secretary of Agriculture
   |  February 2nd, 2012
Q&A > Francisco Javier Mayorga - Secretary of Agriculture
Francisco Javier Mayorga has served as Secretary of Agriculture in two Mexican administrations in the last 10 years. A native of Guadalajara, Mayorga earned a BA in Economics from the Autonomous Institute of Technology of Mexico (ITAM), as well as a MA in Business Administration at the Monterrey Institute of Technology (ITESM).

Previously under Vincente Fox, and currently under President Felipe Calderon, Mayorga has repeatedly demonstrated his expertise in the sphere of agriculture and fisheries. Balancing the protection of natural resources and native crop species, with food safety controls and the marketing of his country’s produce worldwide, Mayorga is ensuring a more sustainable future for all Mexicans.

The Report Company: What are the key elements in your management that explain the impressive increase in Mexico’s agriculture and livestock exports?

Francisco Javier Mayorga: One aspect of it has been the advances in health and safety. There have been important investments in various areas; namely, in the National Service of Agro-Alimentary Health, Safety and Quality (SENASICA); in a network of new generation laboratories to monitor plagues and diseases; and in health campaigns under the tripartite scheme.

We have also invested in promotional campaigns aimed at target markets, looking to diversify ourselves from the United States and Canada. There have been important developments in our presence in Japan, the European Union, Israel, and with some Central and South American countries. We are strengthening relations with the Middle East, Vietnam, Korea, and Indonesia. We are attending international fairs and exhibitions hand-in-hand with producers so they can communicate directly with the consumers and retail channels. All of this coordination has allowed our exports to grow significantly.

TRC: Is the forecast of exporting US$20 billion of agriculture and livestock going to be fulfilled? What are your expectations for 2012?

FJM: Yes those numbers will be achieved, and we will continue that trend in 2012. We are negotiating with China to introduce pork meat into their market. Currently pending is the extension of the economic cooperation agreement with Japan, which will give us greater access to their market with preferential conditions.

We also need to ratify the treaties with Central America and Peru. We are working on the Trans Pacific Partnership (TPP) with the United States, Canada, Colombia, Peru, Chile and some Oceanic countries, seeking to make the Pacific the trade engine of the 21st century. This administration receives US$20 billion in foreign direct investment (FDI), a substantial percentage of which comes from the non-food industry.

TRC: What are your department’s objectives with regards to the exports of products with Designation of Origin (D.O.)?

FJM: Right now, there are 13 products that have D.O., the majority of them liquors produced from Agavaceae. This distinctive brand of tequila has helped other Mexican products to be recognized, and this is good for a country like Mexico. We are not big exporters of soy, maize and wheat, but we do export to niche markets, such as organic produce, and products with D.O.

TRC: What would you tell British consumers about Mexico’s organic products? What are your expectations for these products?

FJM: This market is growing very fast, and Mexico has federal laws that regulate and certify these products. We are in the process of creating an international consumer label, approved by international certification criteria. The organic produce market is growing rapidly, primarily in the United States and Europe. Although we still do not have the volume to be competitive in Europe, we will get there soon.

TRC: What is the Government doing to show the international public that Mexico is strict with health controls?

FJM: That is demonstrated by the fact that we are reaching more diverse and demanding markets like Japan, who Mexico provides with avocados, pineapples and pork meat. Beef exports are also increasing steadily, and we expect to export 100,000 tonnes of this product this year.

TRC: Regarding sea products, what is your department doing to increase exports while maintaining sustainable environmental development?

FJM: We have two concrete goals. The first one is to build new generation ships that can carry out deep sea surveys, which will allow us to explore all of our resources. The second goal is the cultivation of aquatic life within controlled environments, for which we already have agreements with Chile, Argentina and Vietnam. We are also in the process of developing the necessary technology to take advantage of the resources that our coasts have to offer. The National Institute for Fisheries Biology (INAPESCA) is going to become an autonomous entity that will be able to fund itself through selling its services. That way, it will have more freedom to generate knowledge and technology.

TRC: This is a delicate topic, but is your department contemplating opening up the exploitation of these resources to foreign investors?

FJM: Of course, we already have Japanese investment in tuna fisheries in Baja California. Vietnam is also interested in investing in mariculture and aquafarming. There are no laws restricting investment in this sector.

TRC: In the future, which products can become the most competitive?

FJM: Fruits and vegetables will continue to be Mexico´s calling card. Meat exports will continue increasing, and then we also have the liquors.

TRC: How is the Food Safety Program being implemented?

FJM: It is very broad, but I would like to emphasize a program that President Calderon started this year, MASAGRO, aimed at small producers of maize and wheat. The premise of this program is that small producers hold the biggest potential to increase food production. The idea is to give them technical assistance and study the genome sequence of the 16,000 maize, and 80,000 wheat varieties deposited in the International Maize and Wheat Improvement Centre (CIMMT), so this knowledge can become public and does not become property of a few corporations. The Mexican Government is funding part of this research. Other funds are coming from private investors like the Bill Gates and Carlos Slim foundations. This research is being combined with work from the Genetic Resource Centre in Jalisco, which stores sea species, and an inventory of genetic resources of plant, microorganisms, and animal varieties related to agriculture. This technological centre belongs to a global network of research centres.

TRC: How are you managing the controversy generated by the cultivation of transgenic maize?

FJM: Mexico must be careful with the use of genetically modified crops, especially with maize. There exists a social and academic concern regarding the preservation of the genetic varieties of Mexican maize, which we completely agree with. But at the same time, we believe that the need for food, the lack of water, and the characteristics of some terrain incline us towards that option. We are defending, together with the Secretary of Environment and a group of experts, the areas of the country where there are no closely related or native maize varieties. We are focusing the research in those areas to then take it to a commercial stage. We are creating a legal framework to use these technologies, without threatening Mexico´s genetic wealth.

TRC: Now that the Mexican agricultural and livestock industry is more competitive, is the country open to international investment?

FJM: Yes and no. There are many restrictions for buying lands, and it is not an open market. But any other market like machinery processes and equipment is open to investors.

TRC: What expectations does your department have for farming land? What are the challenges?

FJM: We still have the food supply problems on the global agenda. Regarding this issue, President Calderon has confirmed his presence at the G20 summit in Mexico, with respect to market instability, and how to invest more in science and technology. He wants to use the summit to emphasize the importance of green growth, which is Mexico´s hallmark.

TRC: In this global display, what opportunities does the British market represent to Mexico?

FJM: Mexican producers have not taken advantage of the opportunities represented by the British market, perhaps due to a lack of certifications. But we are putting the mechanisms in place that will allow us to adapt our environmental and labour regulations to the needs of the consumers in other parts of the world. Once we fulfil all the necessary requirements, we are going to enter these markets with renewed strength.

TRC: For the remainder of its mandate, what challenges is this administration faced with?

FJM: The topic of climate change is still pending. This has been difficult, and has forced us to rapidly create a scheme to insure against any possible risks derived from this issue. The Federal Government has been improving and perfecting its risk management mechanisms. We have exchanged ideas with Swiss, German, US, and Latin American insurance companies on how to improve our structure.

We also want to complete the organization of our sugar refinery industry, since it has been heavily invested in, and enjoys free access to the North American markets. We are now looking to sell the remaining 5% of the sector, so we can leave it in private hands under solid regulations.

TRC: What does the future hold for Mexico as an exporter?

FJM: As well as continuing to export the products for which we are recognised, Mexico is going to play a key role in the agricultural and livestock industry thanks to global companies that are growing at a fast rate. Mexico has also further developed food processing technologies, as well as its logistic capabilities.

With regards to research and development, Mexico has become an interesting destination to diversify the supply of major markets. We are also giving a boost to mixtures of products like coffee, cocoa and vanilla. We are also looking to recuperate the local varieties of these products to introduce them into new markets. Mexico has something to say and will continue being a prominent figure in the food industry.