The Water Crisis and Mexico's agrifood (water) exports

Edwin J. Higinio S.[1] , OBELA[2]

Mexico's water crisis has intensified recently, exacerbated by climate change, urbanisation and inefficient water use. The country faces a dilemma because much of the available H2O is destined for the agrifood export sector. In addition, there is a growing demand for food for the national economy, which makes agriculture a major consumer of the liquid element. As crop and livestock exports have grown steadily, so has the pressure on local water resources, leading many regions to experience alarming pressure on water availability. This article examines the interrelationship between water consumption, the water footprint of agrifood products and exports to highlight the urgent need to implement sustainable production policies in the context of climate change and crisis.

The Water Crisis

The water crisis, a pressing issue of our time, is defined as the insufficiency of drinking water to meet the needs of a given population. Its main characteristics are the excessive use of underground reserves and excessive contamination of the elements. The water crisis in Mexico has intensified due to several interrelated factors. After the worst drought in seventy years, in 2011, the phenomenon has become more accentuated since 2019 and 2023 is the worst on record so far. It is all a product of climate change and is aggravated by growing agrifood export production and increasing urbanisation.

According to the World Water Development Report 2023, water use has increased by 1% annually over the last four decades and is projected to continue on this trend until 2050. This increased consumption not only impacts the flora and fauna of aquatic biomes, putting the survival of several species at risk, but also reduces the capacity of ecosystems to absorb carbon dioxide, which favours climate change and, consequently, global warming. Recurrent droughts increase evaporation and reduce precipitation, thus creating a vicious circle.

Water stress is fundamental in the context of climate change, droughts and global scarcity crises. It is the condition in which the demand for the element exceeds the quantity available or is greater than the capacity of the resources to replenish themselves naturally in a region. This condition is considered to exist when more than 40% of the usable liquid is used. The indicator compares the total volume of water withdrawn and consumed in a year with the total available in rivers, lakes and aquifers in a geographical space.

On the American continent, some regions of the United States and Chile, as well as a large part of Mexico, are under extremely high levels of water stress (more than 80%). In Mexico, critical regions for agrifood production, such as the Bajío and the north (arid zones), suffer from recurrent droughts that have significantly reduced water availability for human consumption, agriculture and some industries. 

Farming in an arid climate (which reduces the incidence of pests) with the implementation of efficient irrigation has allowed food production for export despite less favourable natural conditions. In Peru, the desert regions of Arequipa, Ica, La Libertad and Lambayeque have become important centres for intensive agriculture, for example, blueberries, asparagus, lemons and grapes, thanks to mega irrigation projects that take advantage of the rivers that rise in the Andes. 

In Mexico, the situation is particularly worrying in north-central states such as Zacatecas and Nuevo León. During the first half of 2024, 52 of 58 municipalities in the former experienced moderate to extreme droughts. On the other hand, the state is critical for beer production and export. Grupo Modelo's largest plant is located in Calera, with 24 million (17% of total annual production) hectolitres of beer per year. The subdirector of Water Admission in the local Conagua Directorate states that the plant currently uses 6.4 million cubic metres of the natural resource in the middle of the desert, where it is located. The Calera aquifer, from which the factory is supplied, is the second most exploited at the national level, according to Conagua. The first is the Lerma River, located in Guanajuato, in the Poniente region.

 At the same time, in Nuevo León (located in the north), bottling and brewing companies also extract large quantities from underground aquifers. Conagua reported that seven of the eight municipalities in the Monterrey metropolitan area are classified as abnormally dry, aggravated by global warming, export agriculture, Nearshoring and the lack of a management policy. There is a clear preference for meeting the needs of the agriculture and export industries. This results in water supply cuts to the population.

In 2022, Conagua declared overexploitation of the Ziracuaretiro aquifer in Michoacán, critical for avocado (avocado in South America) cultivation due to the massive water extraction for plantations. In addition, in municipalities such as Uruapan and Tacámbaro, the lack of water has led to prolonged water shortages, while avocado producers make intensive use of the resource.

Export Overview.

Mexico ranks twelfth in world food production, underlining the importance of this sector for the national and global economy. The country also ranks twentieth globally regarding the number of people employed in the agricultural and fisheries sectors, with an economically active population (EAP) of 6.5 million. In 2023, agrifood exports accounted for 54% of the country's total exports.  

Table 1. Main exported agrifood products. Mexico 2 22 (Millions of USD)
Year	Value
Beer	$ 6,083
Tequila	$ 4,085
Red Fruits	$ 3,789
Avocado	$ 3,368
Beef and veal	$ 2,238
Tomato	$ 2,143
Sweet biscuits	$ 1,182
Confectionery	$ 1,138
Pepper	$ 1,124
Sugar	$ 1,012
Source: OBELA, with data from the Ministry of Rural Development.

 

Table 1 shows the country's main agro-exports in 2022. The large volume of their shipment implies an intensive use of the water element added to the manufacturing and cultivation process. Mexico's Ministry of Agriculture and Rural Development reported that between January 2010 and the end of 2023, agrifood exports grew from a total of 9,732 tonnes to 26,428 tonnes and are on an upward trend. Products such as grapes, coffee, tomatoes and other vegetables are registering notable increases in export value.

 

 

Water Consumption in Agrifood Production

Approximately 76% of the available resources are used for agriculture in Mexico. To better understand the situation, the concept of water footprint (WF) will be used, which is defined as the total volume of water (litres) used from production to final consumption of a product, including that needed to dissipate its pollutants (fertilisers and insecticides). The parameter is composed of three types of water: blue (surface and groundwater), green (rainfall stored in the soil), i.e. clean, and grey (polluted during processing). The indicator is classified into three levels: high - more than 2500 litres per kilo; medium - 700 to 2500 litres per kilo; and small - less than 700 litres per kilo.

By analysing the HF of exported goods, it is possible to quantify the amount of the resources required to grow and process them; it is possible to see how the demand for these goods intensifies the pressure on nature, which affects domestic consumption.

Table 2 presents the WF of various agrifood products in Mexico. Beef, which exceeds 15,000 litres per kilo, stands out with a high WF, reflecting its high water demand, and avocado, with an average WF of 1,164 litres per kilo. Products with low WH are peppers, red fruits, beer and tomatoes.

 

In addition, the litres of vital liquid associated with producing commodities such as beer, avocados and tomatoes contain a large amount of water in their final form. This means that a direct export of the resource takes place. Thus, the export of these involves their extraction during production and the transfer contained in the end commodity to international markets. 

Conclusion

While contributing to economic growth and employment, the agro-export model in Mexico and other Latin American desert countries also intensifies the crisis by prioritising water-intensive crops for the international market. 

During her swearing-in ceremony, the current president of Mexico assured that reforms would be implemented during her administration to guarantee the adequate use of water. Among the proposed changes are the technification of irrigation in specific areas, a programme to ensure access to water in the Valley of Mexico and Hidalgo, and the clean-up of the three most polluted rivers (Lerma, Tula and Atoyac). He also stated that a start would be made on ordering concessions and the transfer of water rights.

While these policies are necessary, they lack a critique of the agro-export model, which is incompatible with the challenges posed by climate change. Although the proposals are well-intentioned, they are insufficient without fundamental questioning. A comprehensive water policy is needed that considers the regeneration of essential ecosystems to maintain river flow and water infiltration and an overhaul of the production model, which is mainly responsible for resource depletion. Without structural reform, the agro-export model will continue to contribute to resource depletion, global warming and increased risk to water and food security.