Mexican agriculture is undergoing a profound transformation, driven by technology, to tackle escalating challenges posed by climate change, market volatility, and pest resistance. Fidel Sanchez, Key Account Manager at Kynetec, shares insightful perspectives on key trends shaping the Mexican agricultural market in 2025.

The Rise of Precision Agriculture: Drone Applications and Digital Transformation

Digital agriculture is flourishing in Mexico, with drone technology playing a pivotal role. Recent Kynetec research in Mexico and Colombia indicates that while drone adoption is widespread, it remains fragmented, primarily driven by independent local service providers.

Mexican farmers particularly value the versatility of drones in wet fields or hard-to-access areas, which effectively prevents potential soil damage from traditional ground-based application methods. For more commercially oriented farms, drones are crucial tools for enhancing crop protection efficiency and reducing resource waste. Faced with intensifying climate volatility and fierce market competition, farmers' demand for highly efficient, low-risk production solutions is growing, serving as a driving force behind the adoption of precision agriculture.

Major agricultural input and technology companies are actively launching digital solutions aimed at boosting farm productivity. Concurrently, other crop protection companies are developing similar digital tools to enhance farmer engagement and optimize planting decisions.

Mainstreaming of Biological Products: High-Value Crops Lead the Way

The surge in demand for biological inputs in Mexico's high-value economic crops signals a significant shift towards more sustainable and integrated crop protection strategies.

For berries, for instance, the area treated with bio-insecticides soared from 65% in 2022 to 97% in 2024, while bio-fungicide application grew from 52% to 80%. The area for bio-fungicide use in potatoes significantly increased from 1% to 11% during the same period. For tomatoes, bio-insecticide application has remained stable at around 30% over the past three years, with bio-fungicide treated areas growing from 14% in 2022 to 23%.

The application of biostimulants and plant growth regulators has also accelerated notably, with treated areas in cucurbits, bell peppers, and potatoes expanding from 10-20% in 2022 to over 50%. For berries and avocados, usage rates skyrocketed from 40% in 2022 to 70-90%.

Emerging biological products such as bio-nematicides, bio-miticides, bio-bactericides, inoculants, and pheromones, though currently smaller in market size, have begun to gain traction and are now included in market data. While bio-fungicides and bio-insecticides dominate the market, the diversification of the product portfolio offers farmers more precise solution options.

Notably, multinational agrochemical giants are actively entering the biological sector, yet they face strong competition from local companies in terms of brand recognition and market share across different crops and regions.

2024 Key Crop Market Dynamics

In 2024, Mexico's corn production plummeted by 8.9% to 25.1 million tons due to drought, marking a nine-year low. This highlights the urgent need for drought-resistant varieties and efficient water management strategies.

Bell peppers, a crucial export crop, are facing the dual challenges of falling prices and severe drought, leading to a reduction in planted area. Despite this, Mexico remains a global leader in green and dried chili pepper exports.

Berries continue their long-term growth trajectory, driven by strong international demand and favorable climatic conditions. This expansion is expected to continue as farmers adopt biological agents and premium crop protection solutions to meet export standards for export.

Avocado remains a key export commodity, with approximately 75% of its production sold to the United States. However, in Michoacán, the primary producing state, environmental measures have led to a slight decrease in planted area for the first time in nearly a decade, reflecting the increasing importance of sustainability in agricultural planning.

Tariffs and Trade Policy Impacts

The threat of U.S. tariffs on Mexican agricultural exports continues to exert pressure on the industry. Against a backdrop of shrinking profit margins and rising input costs, many farmers are compelled to adopt more efficient production methods or switch to high-value crops to maintain competitiveness. This trend further fuels the demand for digital tools, precision agriculture, and sustainable inputs like biological products.