Atlas 2018 Eng

AGRI-FOOD PRODUCTS WITH The designation allows:DESIGNATION OF ORIGIN The safeguarding of the craftsmanship and traditions ofThe Designation of Origin is the denomination that receives a good with unique attributes in relation to the producers based on quality standards, which in their casegeographical area of its production, to the natural and human factors that intervene in its production for legal are imposed by the Mexican O cial Standards.protection purposes. The conditions to improve the dissemination, Mexico has 13 products related to agriculture with promotion and o ering of the protected product at a unique attributes that uphold their regional, national and international level. Designation of Origin A better sales price, while being respectful of the traditional production methodsand their quality.Tequila Product DOAgave tequilero Agricultural crop The uni cation of the work of all the artisans and/or producers authorized to use it, which Guanajuato, Jalisco, Michoacan, Nayarit, Tamaulipas Location generates a spirit of trade union protection. Mezcal Fostering the organization of the productive Agave mezcalero sector and promoting of producers’ access to the national and international markets. Durango, Guanajuato, Guerrero, Oaxaca, San Luis Potosi, Tamaulipas, Zacatecas A guarantee to the consumer of the speci c characteristics and quality level of the good. Sotol A legal framework of defense and protection Sotol or desert spoon for the producer against imitations. Coahuila, Chihuahua, DurangoBacanora Café Veracruz Chile habaneroAgave bacanora Coffee cherry Habanero chili Sonora Veracruz Campeche, Quintana Roo, Yucatan Charanda Cacao Grijalva Sugarcane Cacao Michoacan Tabasco Arroz Morelos Vainilla de Papantla Café Chiapas Paddy rice of the morelos variety Vanilla Coffee cherry Morelos Puebla, Veracruz Chiapas Chile Yahualica Mango Ataulfo Chili Mango Jalisco, Zacatecas ChiapasSource: SIAP with data from the Mexican Institute of Industrial Property and the World Intellectual Property Organization. 149

GrapefruitDuring the 2012-2017 period, the increase in the grapefruit plantations’area was marginal; however, the 0.9% growth in its production duringsaid period was originated by better yields in some states. Percentage of the production value by state2012-2017 National production volume TTerennddencia During 2017, the value of(thousand tonnes) the grapefruit production of 436 Veracruz, the leading state, exceeded 558 million MXN. PArvoemraegdeio Tamaulipas 423 14.64252008 2009 2010 20101 2012 2013 2014 2015 2016 2017 Veracruz 432 48.5 401 397Top 10 in production volume 415Main producing states 425 425Rank StateVolume (tonnes) Variation (%) Michoacan 424 2012-2017 16.2 438National total2012 2017 4421 Veracruz 6.4 According to the color of their flesh, grapefruits Variations %2 Michoacan415,471 441,873-7.3 are classified as: white, pink and red or ruby red. 3 Tamaulipas 60.0 4 Nuevo Leon 261,549 242,409 46.9 2012-2017 Indicators 5 Campeche 32.1 6 Sonora 40,500 64,808 61.5 7 Puebla -40.2 8 Yucatan 35,542 52,205 51.0 9 Sinaloa -69.6 10 Oaxaca 26,426 34,902 301 -58.0 Rest 13,514 21,820 -19.2 20,221 12,093 4,208 6,355 7,324 2,229 294 1,178 Share in the national production of fruits 2,285 959 100% 3,608 2,916 Annual per capita consumption Area Volume Value Yield Average rural price Sown Lost Harvested Thousand Million Tonnes tonnes MXN / hectare MXN Thousand hectares / tonne 1,151 25.0 19 NA 18 442 2,606 19.8 -5.9 3.4 kg3.3 3.5 Annual 7.9 NA 7.2 0.9 9.9 0.5 18.8 2016-2017 8.6 1.0 NA 0.7 1.2 2.4% 2.0% AAGR 2012-2017 2012 2017 Does not apply Decrease IncreaseNational monthly production (%) Mostly available Moderately available Least or not availableThe most important harvest of this citrus takes place between October and December. 5.9 8.1 8.2 7.1 11.6 4.6 3.5 3.9 5.8 16.2 13.3 11.8January February March April May June July August September October November December150

GrapefruitWorld ranking Mexico 4 2017 One in every 20 tonnes of this citrus is 2012-2017 Foreign trade th world produced in the Mexican countryside. 4 2012 producer Around 80 countries have areas with Variation (%) 2012-2017 th world grapefruit plantations. From them, China producer 441,873 tonnes is the leading producer. It contributes Imports Exports Trade balance Imports Exports slightly more than half of the volume of 415,471 tonnes this citrus harvested in the world. Votlounmnees 1,331 22,932 21,601 2.1 22.32012-2017 Foreign trade Value 0.532 14.2 13.668 76.9 77.3 million USDThe volume of exported citrus during 2017 showed an annual rise of 0.9%, that stands in contrastwith the increase in the national harvest of the fruit. IncreaseCommercial origin-destination The global imports of this citrus reached an annual commercial valueIn 2017, France was the main destination of the Mexican grapefruit exports by volume; this country of 1 billion USD and a volume of 1.1acquired 9,632 tonnes. By value, Japan is the one that disbursed the most foreign currency for the million tonnes. The Netherlands makesacquisition of the fruit. In the last six years, national grapefruit was sold to 14 nations. the biggest purchases: 250,000 tonnes. EstadUoSs AUnidos FraFrnacnecia 5,589,175* Japan* USD Buyer Main Supplier Importer and Exporter(Mexican exports) (Mexican imports) Adequate geographical characteristics for the productionForeign trade evolution (million USD) AAllttiittuuddee RRaaiinn Temperature EEddaapphhoolologgyy 2135 tao1390°°CC SSaunedloy-ploearmey,albolaemyyparonfduncldaoy,-lsoaanmdy-sloailms, yofrmeeedoifum 14.2 10,6t0o01a,020,2000 11,0,0500toa 21,01050 calcatroeohuesavayndtecxhtluoreids,eps,HpoHfo5f.36.-08-.07.5 13.6 MMAASSLL mmmm 11.4 9.7 Chiapas, Tabasco and Nayarit have 10.4 favorable geographical conditions for the production of grapefruit, 8.7 however, its production is scarce.7.8 8.0 5.5 5.10.395 0.309 0.37 0.392 0.3 0.599 0.45 0.637 0.62 0.532 Exports Imports2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Monthly distribution of foreign trade (%)Imports Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1.5 0.7 0.2 4.1 18.1 29.3 28.0 14.9 2.2 0.1 0.1 0.8Exports 5.6 7.9 5.7 1.4 0.5 1.0 0.5 21.8 27.0 17.6 5.0 6.0 Grapefruit production potential 151

Wheat grainThe annual decrease of 9.2% in this grain’s sowing area during2017 determined a fall of 9.3% in the threshed volume. Percentage of the production value by state2012-2017 National production volume Baja California(thousand tonnes) 11.1 Sonora 52.0 PArvoemraegdeio Wheat sales reported revenues of 6.913 billion MXN 3,701 to Sonoran farmers in 2017. Treennddencia 3,4424,2142008 2009 2010 20101 2012 2013 2014 2015 2016 2017 Guanajuato 4,116 10.2 3,677Top 10 in production volume3,628Main producing states 3,274 3,357Rank State 3,670Volume (tonnes) Variation (%) 3,711 2012-2017 National total 3,8632012 2017 1 Sonora 3,504 7.0 2 Baja California Variations %3,274,337 3,503,5210.2 3 Guanajuato -15.9 4 Sinaloa 1,784,563 1,788,866 4.6 5 Michoacan 211 6 Jalisco 471,737 396,717 109 7 Chihuahua 41.3 8 Nuevo Leon 339,569 355,173 -12.3 9 Tlaxcala 33.9 10 Coahuila 88,112 273,917 -51.8 If the national wheat production were evenly distributed among the 21.1 milling units of the country, each one would transform around 37,000 Rest 108,951 227,815 -12.5 tonnes of cereal into flours and other by-products per year. 102,057 144,172 2012-2017 Indicators 108,457 95,092 39,641 53,079 104,752 50,465 Share in the national production of grains 22,549 27,311 100% 103,949 90,913 Annual per capita availability Area Volume Value Yield Average rural price 64.0 kg63.9 64.1 Sown Lost Harvested Thousand Million Tonnes MXN tonnes MXN / hectare / tonne Thousand hectares 13,289 5.3 3,793 662 0.3 661 3,504 -6.0 -0.8 3.6 Annual -9.2 -94.7 -8.6 -9.3 2.4 -1.3 1.0 2016-2017 2.4 -50.8 2.7 1.4 12.8% 11.1% AAGR 2012-2017 Decrease Increase 2012 2017National monthly production (%) Mostly available Moderately available Least or not availableIn Mexican wheat fields, the most abundant harvest takes place during May and June. 1.0 0.1 0.0 7.3 61.2 21.5 4.5 0.2 0.2 1.0 1.6 1.4January February March April May June July August September October November December152

Wheat grainWorld ranking Mexico 29 2017 Of every thousand kilograms of threshed th world wheat grain in the world, five are 32 2012 producer generated by Mexican agriculture. 2012-2017 Foreign trade nd world Of the total global volume of this producer 3,503,521 tonnes important grain, 17.6% is grown in Variation (%) 2012-2017 China’s fields. 3,274,337 tonnes Imports Exports Trade balance Imports Exports Votlounmnees 4,903,043 498,676 -4,404,367 5.6 -20.1 1442012-2017 Foreign trade Value 1,027 -883 -27.9 -43.8 million USDIn 2017, the international price levels of some cereals determined a fall in the volume of durum wheat thatMexico exported. The breadmaking grain imports made by the country reached a historic maximum. Increase DecreaseCommercial origin-destinationThe characteristics of the wheat sold by Mexico have allowed the expansion of the geographic market.Between 2012 and 2017, the number of purchasing countries increased from 19 to 21. In the opposite case,there are fewer nations from which the country buys wheat: during this period, it decreased from 22 to 10. 60,395,750* Turkey Mozambique, Indonesia, Algeria Venezuela and Italy are listed as the largest importers of this grain, although for Mexico the opportunity lies in the sale of durum wheat to the Italian market and some African countries. Algeria* USD Buyer Main Supplier Importer and Exporter(Mexican exports) (Mexican imports)Foreign trade evolution (million USD) Adequate geographical characteristics for the production 1,425 Altitude Rain Temperature Edaphology 25 to 2,800 700 to 1,000 15 to 23 °C Soils with medium texture, loamy-clay-silty and MASL mm loamy-clay, pH of 5.0 - 7.01,189 1,224 1,267 1,296 1,027 981 926 Wheat grain is produced in the areas with 798 conditions of optimal590 692 production potential. 404 407 299 256 247 309 144 276 88.12008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exports ImportsMonthly distribution of foreign trade (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 8.8 8.6 9.2 7.3 8.1 6.3 10.7 9.2 8.7 6.2 7.1 9.8Exports 11.0 6.1 2.2 0.1 0.2 15.2 16.7 7.7 0.2 10.9 0.2 29.5 Wheat grain production potential 153

Table grapeAs a result of the increase in the sown area, the production in 2017 Percentage of the production value by stateexceeded by 84,000 tonnes that of 2016, which translates into anannual growth of 32.6%.2012-2017 National production volume Baja California Sonora(thousand tonnes) 1.3 94.3 TTreennddencia Sonora contributes 94.3% of the national 323 total of the fruit, with a production value of APvreormaegdeio 6.101 billion MXN. 2452008 2009 2010 20101 2012 2013 2014 2015 2016 2017182 193 215 Zacatecas 198 3.0 280Top 10 in production volume 259Main producing states 247 283Rank State 256Volume (tonnes) Variation (%) 340 2012-2017 National total Variations %2012 2017 1 Sonora 21.4 2 Zacatecas 279,967 339,957 19.2 3 Aguascalientes 27.3 4 Baja California 260,904 310,926 2,804 5 Guanajuato 48.6 6 Coahuila 12,198 15,525 110 7 San Luis Potosi -2.3 8 Durango 204 5,924 NA 9 Baja California Sur NA 10 Puebla 3,929 5,839 71.9 62.0 Rest 323 676 -100 529 517 Flame seedless, Sugraone, Red globe and Perlette are the most commonly produced table grape 0 475 varieties in Mexico. 0 49 13 22 34 1,865 0 Share in the national production of fruits 2012-2017 Indicators 100%Annual per capita consumption Area Volume Value Yield Average rural price 1.6% 1.5% Sown Lost Harvested Thousand hectares Thousand Million Tonnes MXN 2012 2017 tonnes MXN / hectare / tonne 22 NA 20 1.8 kg1.7 1.9 Annual 340 6,467 16.6 19,022 2016-2017 14.6 NA 12.7National monthly production (%) 4.7 NA 4.9 32.6 34.2 17.7 1.2 AAGR 4.0 -0.2 -0.9 -4.0 The largest amount of table grapes is cut in June. 2012-2017 0.0 0.0 0.1 Does not apply Decrease Increase January February March Mostly available Moderately available Least or not available154 0.0 10.5 64.2 14.8 5.4 3.4 1.4 0.1 0.1 April May June July August September October November December

Table grapeWorld ranking Mexico 29 2017 Mexican viticulture contributes 2012-2017 Foreign trade th world 0.5% of the available global volume 24 2012 producer of table grape. Variation (%) 2012-2017 th world One fifth of the grapes produced in producer 339,957 tonnes the world have their origin in the Imports Exports Trade balance Imports Exports vineyards of China. 279,967 tonnes Votlounmnees 78,991 195,899 116,908 20 16.72012-2017 Foreign trade Value 133 246 113 15.7 53.6 million USDSome influencing factors in the volumes of fresh grapes that Mexico trades with foreign countries are:the availability throughout the year and tastes differentiated by variety. IncreaseCommercial origin-destination The first five table grape importing nations are: the United States,In 2017, Mexican foreign sales of this fruit were made to 13 countries; one less than that observed in Germany, the Netherlands, the2012. In the aforementioned commercial flow, the largest purchase was made by the United States. United Kingdom and China. WithThe grapes that enter national territory come from the United States, Chile and Peru. the exception of our neighboring country to the north, the rest of 239,671,588* Japan them do not acquire Mexican grapes. USA* USD Buyer Main Supplier Importer and Exporter(Mexican exports) (Mexican imports)Foreign trade evolution (million USD) Adequate geographical characteristics for the production 246 Altitude Rain Temperature Edaphology 0 to 400 0 to 500 15 to 25 °C Sandy-loamy soils, well drained and with organic MASL mm matter, pH of 5.5 - 7.0147.8 157.3 160.1 153.3 161.8 133 The regions with adequate97.0 117.8 140.2 150.3 159.5 geographical characteristics 97.6 124 are the ones with the highest 123 120 114 production of table grape. 115 64 40.72008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exports ImportsMonthly distribution of foreign trade (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 10.4 5.6 8.1 5.6 0.1 0.0 1.7 8.8 9.9 14.1 16.5 19.2Exports 0.0 0.0 0.0 0.1 34.2 60.9 3.8 0.4 0.3 0.2 0.0 0.1 Table grape production potential 155

Industrial grapeAdverse conditions in 2017 led to an annual shrinkage of19.8% in the production of industrial grapes.2012-2017 National production volume Percentage of the production value by state(thousand tonnes) Baja California APrvoemraegdeio 56.7 The sales price of industrial grape favoring Baja California consolidates 75 Coahuila its predominance in production 9.2 value: 349 million MXN in 2017. Treennddencia 74742008 2009 2010 20101 2012 2013 2014 2015 2016 2017 Zacatecas 72 15.0 83 71Top 10 in production volume 82Main producing states 79 76Rank StateVolume (tonnes) Variation (%) 73 2012-2017 81National total2012 2017 651 Baja California -21.4 Variations %2 Zacatecas82,20264,628-15.2 3 Sonora 4 Aguascalientes 21,139 17,924 7.3 5 Coahuila -57.4 6 Queretaro 16,419 17,616 -23.7 7 Chihuahua 82.2 8 Guanajuato 29,350 12,516 9 San Luis Potosi NA 10 Nuevo Leon 11,167 8,516 -25.6 The grapes used in juice and jelly production have lower concentration of sugar and low acidity, while those destined to wine making have Rest 2,209 4,025 NA high acidity and a moderate content of sugar. NA 0 2,445 213 -100 1,200 893 0 491 0 192 Share in the national production of fruits 3 11 2012-2017 Indicators 100% 715 0 0.5% 0.3% Annual per capita consumption Area Volume Value Yield Average rural price 2012 2017 Sown Lost Harvested Thousand Million Tonnes tonnes MXN / hectare MXN Thousand hectares / tonne 616 9.1 8 NA 7 65 9,536 -1.7 -13.0 0.5 kg0.4 0.6 Annual -6.4 NA -7.8 -19.8 7.0 -4.7 22.5 2016-2017 12.2 0.4 NA 0.0 -4.7 AAGR 2012-2017 Does not apply Decrease IncreaseNational monthly production (%) Mostly available Least or not availableThe largest harvest of industrial grape takes place during September. 0.0 0.0 0.0 0.0 0.0 4.0 12.7 17.7 41.4 21.7 2.4 0.1January February March April May June July August September October November December156

Industrial grape 2012-2017 Foreign trade Variation (%) 2012-2017 Imports Exports Trade balance Imports Exports Votlounmnees 0.0002 2.9 2.8998 NA 129 4,8352012-2017 Foreign trade Value 1 4,834 NA 388 USDThe supply of grapes for the Mexican viniculture industry and for the production of juice is based onvolumes generated in the national vineyards. Does not apply IncreaseCommercial origin-destination The value of the world imports of grape must exceeds 96 millionThe insignificant amount of grapes for industrial use that Mexico trades with other countries limits the USD annually. The acquisitionsnumber of destinations for its sale and the origins of purchase. of Germany, France and Italy are the most significant. 4U,8S35A** USD Buyer Main Supplier Importer and Exporter Adequate geographical characteristics for the production(Mexican exports) (Mexican imports)Foreign trade evolution (USD) Altitude Rain Temperature Edaphology 0 to 3,000 400 to 1,100 10 to 35 °C Clay loamy soils of medium to low depth MASL mm 51,300 The areas that have suitable edaphoclimatic characteristics for the development of grapes are located in the north and center of the country, such as in Sonora, Sinaloa, Chihuahua, Coahuila, Baja California Sur, Zacatecas, Guanajuato and San Luis Potosi.11,375 9,0700 0 3,610 1,258 9900 1,1000 0 1,050 1,800 4,835 Exports 00 0 78 1 Imports2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Monthly distribution of foreign trade (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 0.0Exports 0.1 99.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Industrial grape production potential 157

WITH GRAPES AND WINE, WE ARE ON THE RIGHT TRACK Main wine producing states in Mexico and their grape varieties Approximately 80 grape varieties 750 ml Baja California Coahuila are grown in Mexico; 50% are Red varieties: Cabernet-Sauvignon, Red varieties: Cabernet-Sauvignon, allocated for industrial use, per capita wine mainly for wine. During the last consumption Merlot and Tempranillo Merlot and Syrah decade, the consumption of White varieties: Chenin Blanc, Chardonnay White varieties: Chardonnay and Muscat Mexican wine grew 20%. However, the current production and Sauvignon Blanc Queretaro only covers 30% of the national Red varieties: Tempranillo demand. Zacatecas Red varieties: Carignan, Ruby and Cabernet-Sauvignon Cabernet and Salvador White varieties: Chenin Blanc, White varieties: Saint Emilion, Italia Chardonnay and Sauvignon Blanc and Muscat Merlot Tempranillo Syrah Classification of Muscat Others the industrial 8.0% 5.0% 5.0% grape according Sauvignon Blanc 3.0% 14.0% to its color Saint Emilion 12.0%Cabernet Sauvignon Salvador Carignan Chenin Blanc Chardonnay Early Divine 17.0% 22.0% 16.0% 15.0% 19.0% 18.0% 17.0% Others 29.0% Red varieties White varieties Wine classification according to the type of grape Machining Polyphenols are the substances Red grapes without peel can Red wine White wine Rosé wines can be that give the grape its color. The produce white wine. During Pink wine produced by using 100.0% pigments (anthocyanins) are the vinification process, the red grapes, but they found in the skin of the grape longer the peels remain with can also be made by and are responsible for the color the juice, the more color the mixing white and of the wine. wine will have. red grapes. Fertilization White wine 98.0% Year 2017 13.5 ton/ha Irrigation Thanks to their • In 2016, Mexico returned to the International quality and safety Organisation of Vine and Wine 98.0% standards, our • Wine export to more than 30 countries Year 2008 10.0 ton/ha country's grapes • 2017 International Awards and wine haveThe improvement in grape varieties and technological Technical assistance achieved national Concours Mondial de Bruxellesinnovations have allowed an increase in productivity and international Spain: 6 Gold medals 94.0% 12 Silver medals and yield in the sector. recognition International Wine CompetitionSources: SIAP, SAGARPA. United States: Gold medal158

SAFE PRODUCTS Preventing potential health hazardsThe Codex Alimentarius is a set of internationally approvedstandards, guidelines and codes of practice to guaranteefood safety and quality. The CODEX Alimentarius Commission de nes food safety as: “The guarantee that food will not cause harm to the consumer when it is prepared and/or eaten according to its intended use.” The objective of keeping products safe is to prevent potential health hazards, always ensuring that the related practices do not a ect the environment.México Calidad Suprema: ISO 22000 standard:Certi cate issued by The InternationalSAGARPA and the SE Organization forto ensure the safety Standardizationand health of certi es food safetyagricultural products management systems in any organizationDistinctive “H”: Federal Inspection Type In Mexico, food safety is a high priority inQuality label granted Certification: public health. The correct implementationby the Ministry of Granted by SAGARPA of the Good Practices Manuals, applicableTourism, endorsed by to the slaughter to the entire primary sector and thethe Ministry of Health, centers that are manufacturing industry, guarantee thefor static food and managed under the consumer hygienic, harmless, fresh andbeverage standards of Good healthy products.establishments. Manufacturing Practices Five keys to food safety: Keeping Using safe water Separating raw Keeping food at safe Cooking cleanliness and raw ingredients and cooked foods temperatures thoroughly To ensure safety in the food 1.- Hazard 2.- Critical 3.- Establish 4.- Monitor 5.- Establish 6.- Veri cation 7.- Recordkeeping industry, WHO promotes the analysis Control critical limits CCP corrective application of the Hazard Points action Analysis and Critical Control Points (HACCP) principles.Source: SIAP. 159

RaisinsThe cultivation of raisins showed an adverse productive scenario;its volume registered a 3% decrease in the 2012-2017 period. Percentage of the production value by state2012-2017 National production volume Baja California Sonora(thousand tonnes) 4.1 95.9 Treennddencia Sonora contributes almost the entire national production, 14 with 96.5% of the total. APvroemraegdeio 122008 2009 2010 2011 2012 2013 2014 2015 2016 201710 10Producing states 10Volume (tonnes) Variation (%) 12 2012-2017 Rank State 1320122017 There are two types of dry grapes: dark and light. The first 12 -13.9 is obtained by dehydrating the fruit under the sun, and the National total 1313,13011,304-15.1 second when the drying process takes place in hot air tunnels. 1 Sonora 1412,85210,91340.6 2 Baja California 14 11278391 Variations % 2012-2017 Indicators Share in the national production of fruits Annual per capita consumption Area Volume Value Yield Average rural price 100% 0.2 kg0.1 0.3 Annual Sown Lost Harvested Thousand Million Tonnes 2016-2017 Thousand hectares tonnes MXN / hectare MXN 0.1% 0.1% / tonne AAGR 4 NA 3 11 197 3.5 2012 2017 2012-2017 17,410 -0.5 NA -12.4 -21.1 -23.7 -10.0 -0.1 NA -2.6 -3.0 9.1 -0.4 -3.2 12.4 Does not apply Decrease Increase National monthly production (%) Mostly available Least or not available The largest harvests of this fruit take place during July. 0.0 0.0 0.0 82.3 2.7 12.4 2.6 0.0 0.0 0.0 0.0 0.0 April May June July August September October November December January February March160

Raisins 2012-2017 Foreign trade Variation (%) 2012-2017 Imports Exports Trade balance Imports Exports Votlounmnees 10,717 1,848 -8,869 -44.1 1.9 1.82012-2017 Foreign trade Value 15.8 -14 -47.5 31.9 million USDThe dehydration level of these grapes allows them to be stocked, making a constant trade possiblethroughout the year. For Mexico, the most significant volume is exported in September and October, Increase Decreaseand regarding its imports, the largest purchase period corresponds to the last two months of the year. Of the nations that importCommercial origin-destination this dried fruit, the four with the largest purchases are: theOf the six countries from which Mexico purchased this fruit during 2017, the United States and Chile United Kingdom, Germany,provide the largest amount: 7,208 and 3,108 tonnes, respectively. Among the nine nations that Holland and Kazakhstan,acquired Mexican grapes, the most common destination is the United States with 1,526 tonnes. who do not buy from Mexico. 1,473,372* USA Belize Guatemala* USD Buyer Main Supplier Importer and Exporter Adequate geographical characteristics for the production(Mexican exports) (Mexican imports)Foreign trade evolution (million USD) Altitude Rain Temperature Edaphology 0 to 400 300 to 600 15 to 25 °C Loamy or medium soils with good depth MASL mm 33 34.4 30 30 31.1 Because of to the presence of the 21.7 19.4 ideal geographical conditions for 22.3 raisin production, Sonora and Baja 15.8 California harvest the entirety of18.9 raisin volume in the country .2.3 2 4 2.3 1.4 1.8 1.7 1.7 1.7 1.8 Exports Imports2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Monthly distribution of foreign trade (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 6.1 3.9 8.2 7.2 9.2 9.0 9.2 9.0 10.6 9.0 8.5 10.1Exports 5.5 6.4 3.4 6.5 7.3 4.3 6.2 11.5 11.4 15.9 10.6 11.0 Raisins production potential 161

BlackberryTechnical improvements in the cultivation of this fruit had a favorable impact Percentage of the production value by stateon its production; with an annual increase of 8.8% in 2017. Baja California2012-2017 National production volume 0.7(thousand tonnes) The fields of Michoacan are ideal for the sowing of blackberry; their production value in 2017 exceeded 10.31 billion MXN. Treennddencia 238 APvroermaegdeio 1502008 2009 2010 20101 2012 2013 2014 2015 2016 2017118 116Top 10 in production volume Jalisco 62Main producing states 1.1 136 140Rank StateVolume (tonnes) Variation (%) 129 2012-2017 153National total2012 2017 1231 Michoacan 93.4 2492 Jalisco139,803 270,399 93.1 Michoacan 2703 Colima 94.9 97.7 Variations %4 Baja California134,708260,14382.5 5 Estado de Mexico NA 6 Guanajuato 3,883 7,566 52.3 7 Morelos NA 8 Queretaro 915 1,670 56.0 9 Veracruz -51.5 10 Mexico City 0 722 -54.2 -19.9 Rest 81 123 -77.7 It is possible to identify the degree of ripeness of a blackberry by looking at its color; it starts greenish-white, going through red 0 59 and finally reaching purple or black. 23 36 68 33 36 17 20 16 Share in the national production of fruits 69 16 2012-2017 Indicators 100% Annual per capita consumption Area Volume Value Yield Average rural price 0.8% 1.2% Sown Lost Harvested Thousand Million Tonnes 2012 2017 tonnes MXN / hectare MXN Thousand hectares / tonne 10,558 21.5 13 NA 13 270 39,046 14.0 12.3 1.6 kg1.5 1.7 Annual -2.0 NA -3.1 8.8 22.2 12.0 4.8 2016-2017 2.2 NA 1.9 14.1 7.1 AAGR 2012-2017 Does not apply Decrease IncreaseNational monthly production (%) Mostly available Moderately available Least or not availableBlackberry orchards produce their maximum harvest in May. 7.2 7.0 9.4 9.7 14.6 11.9 1.5 4.1 6.9 7.8 10.5 9.4January February March April May June July August September October November December162

BlackberryWorld ranking Mexico 1 2017 Blackberry is produced in 61 countries. 2012-2017 Foreign trade st world Vietnam contributes 13.8% to the global 2 2012 producer supply of this fruit. Variation (%) 2012-2017 nd world Mexico is an international benchmark producer 270,399 tonnes in the production of this berry; it contributes Imports Exports Trade balance Imports Exports one quarter of the total harvested volume. 139,803 tonnes Votlounmnees 408 70,086 Value 2.5 321 69,678 113 39.42012-2017 Foreign trade million USD 318.5 311 56.5The growing international demand for berries has encouraged the Mexican production of blackberry Increasefor foreign sale. In 2017, the volume and value exported exceeded the previous year’s flows in 1,720tonnes and 5.8 million USD. The challenge of the internationalization ofCommercial origin-destination this Mexican berry is the expansion of sales to nationsThe international sales destinations of Mexican blackberry continue to increase. In 2012, it was of the European Union.exported to 25 countries, and in 2017 it extended to 31. The United States acquired 65,248 tonnes;amount that represented 93.1% of the total exports. 289,618,983* United Kingdom USA Netherlands* USD Buyer Main Supplier Importer and Exporter Adequate geographical characteristics for the production(Mexican exports) (Mexican imports) 321Foreign trade evolution (million USD) Altitude Rain Temperature Edaphology 2,000 to 3,000 300 to 900 5 to 22 °C Loamy and sandy loamy soils with good drainage MASL mm 315 280 It is a crop that develops favorably in heights greater than 1,500 MASL; 222 however, there are areas in Michoacan 205 where it takes place at altitudes ranging from 1,200 to 1,400 MASL. 207 151 158109 126 0.1 0.04 1.02 0.4 0.6 0.8 1.1 2.2 2.7 2.5 Exports Imports2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Monthly distribution of foreign trade (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 0.2 0.2 0.4 0.3 18.0 19.7 23.3 15.6 8.1 13.8 0.2 0.2Exports 9.9 9.8 16.0 13.5 13.5 2.7 0.4 0.4 2.1 8.2 10.5 13.0 Blackberry production potential 163

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Livestock Subsector 165

Poultry in carcassIn 2017, the national poultry production was 4.3% higherthan the previous year, so the average annual growth ratefor the period from 2012 to 2017 was of 2.8%.2012-2017 National production volume Percentage of the production value by state(thousand tonnes) TTreennddencia With a joint production that represents 33.8% of the total, Jalisco, Veracruz and 3,191 Queretaro, generated 33.551 billion MXN in 2017. APvroemraegdeio 2,8392,5812008 2009 2010 20101 2012 2013 2014 2015 2016 2017 Queretaro 2,636 11.0 2,681 2,765Top 10 in production volume Jalisco Veracruz 2,792Main producing states 11.7 11.1 2,808Rank State 2,880Volume (tonnes) Variation (%) Share in the national 2,962 2012-2017 production of livestock National total 3,0782012 2017 1 Jalisco 3,212 15.0 100% 2 Veracruz Variations %2,791,639 3,211,68619.1 3 Queretaro 21.3 14.6% 15.2% 4 Aguascalientes 313,743 373,607 58.5 2012 2017 5 Durango 35.2 Moderately available 6 Guanajuato 294,323 357,127 -3.2 7 Puebla 19.0 8 Chiapas 223,752 354,633 12.7 9 Yucatan 12.1 10 Sinaloa 250,301 338,388 14.0 On average, the muscular tissue of poultry in carcass -3.7 represents almost 62%, fat accounts for 21% and the Rest 285,542 276,478 0.5 rest corresponds to the bone structure of the bird. 176,681 210,187 156,965 176,866 154,840 173,566 119,542 136,266 132,138 127,243 683,811 687,324 Annual per capita consumption 2012-2017 Indicators Production Value Producer average price Stock Thousand Million Million tonnes MXN MXN/tonne birds 3,212 99,324 30,926 354 30.6 kg30.5 30.7 Annual 2.1 4.3 8.2 3.6 2016-2017 1.4 2.8 5.5 2.6 AAGR Increase 2012-2017National monthly production (%)Poultry production systems in the country allow this activity to supply very similar volumes of this good throughout the year. 9.5 9.5 9.6 8.0 7.8 7.9 8.0 7.8 7.9 7.7 7.8 8.5January February March April May June July August September October November December166

Poultry in carcassWorld ranking Mexico 6 2017 Mexican poultry farming has th world a production scale that represents 5 2012 producer 3 out of every 100 tonnes that are 2012-2017 Foreign trade th world obtained in the world. producer 3,211,686 tonnes International poultry production Variation (%) 2012-2017 amounts to just over 107 million 2,791,639 tonnes annual tonnes; the United States Imports Exports Trade balance Imports Exports contributes 17.5% of said volume. Votlounmnees 574,358 960 -573,398 69 -55 1.22012-2017 Foreign trade Value 641 -639.8 24.4 -58.5 million USDPoultry appears between the meats of greater consumption in Mexico; even when the nationalproduction is significant, it is necessary to make imports to satisfy the internal demand. In 2017, Increase Decrease574,358 tonnes of this good were acquired. The world’s imports of poultryCommercial origin-destination meat reach around 12.5 million annual tonnes. In that flow,The United States, Brazil and Chile are the countries from which Mexico buys most of the Saudi Arabia, Hong Kong andimported poultry, with 483,000 tonnes, 79,134 tonnes and 11,763 tonnes, respectively. In 2012, Mexico hold the largest shares.national purchases came from two nations, and in 2017 they amounted to six. Vietnam 637,717* Congo Brazil* USD Buyer Main Supplier Importer and Exporter Adequate geographical characteristics for the production(Mexican exports) (Mexican imports) 641 Edaphology Humidity Temperature OrientationForeign trade evolution (million USD) NA 40 to 75% 15 to 25 oC Coops in dry, well-drained areas 625 638 Location From 5 to 10km away from human settlements 515 521 515 444 In the country, there are several315 358 areas with the potential to develop it; however, poultry farming is 323 carried out under a controlled environment in all 32 states.0.5 2.4 3.1 5.2 2.9 1.9 1.9 0.6 1.6 1.2 Exports Imports2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Monthly distribution of foreign trade (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 7.9 7.5 8.1 7.5 8.5 8.3 8.1 9.2 8.7 9.1 9.0 8.1Exports 5.2 7.9 7.1 7.8 5.2 13.2 2.6 5.5 13.6 16.1 10.8 5.0 Poultry in carcass production potential 167

LAYING HEN: they might not be mother hen, but they do lay the eggsEggs are the main source of animal protein Productive cycle Forced molting: Hens undergo a process offor Mexicans and the most economical one. (Average parameters) induced molting to stop egg production andTechnified egg production can be carried outin one, two or three cycles, depending on Kilograms promote the regeneration of theirfactors such as the increase in production 1.8 reproductive system.cost, consumer price, among others. 1.6 Average 19.5 eggs 5th month 63.7 gr per egg 1.4 26.2 eggs 1.23 kg produced 60.9 gr per egg 1.2 1.60 kg produced 1.0 0.8 1st monthPullets have a rearing 0.6 10.4 eggs 12th monthperiod of 17 weeks 46.7 gr per egg 23.1 eggs(4 months). 0.4 0.49 kg produced 0.2 63.5 gr per egg 2 months 1.47 kg produced of molting 0.0 Months 1 2 3 4 5 6 7 8 9 10 11 12 123456Most of the national egg production is obtainedwith efficient production parameters, very close to Egg formationthe ones shown below: Fertilization 20 minutes Yolk Egg white Production parameters Vitelline membrane Indicator Parameter Albumen deposit 3 hours 24 to 26 hrs Egg white Vitelline membraneLaying period (age) 18 to 90 weeks 30 minutes Outer and inner shellViability Outer and inner shell 1 hour Eggshell membranesAverage egg weight 94% membranes 15 minutes membranes YolkEggs per hen during the period 62.0 gr Albumen hydration 21 hours Eggshell EggshellEgg production per hen Eggshell formation 426 Oviposition 1 hour ExpulsionBody weight of the hen 26.4 kg 30 minutes 1.71 kg The reproductive system of the hen has the ability to produce one egg in a period of 24 to 26 hours States with the highest number of laying hens Sonora Coahuila Nuevo Leon Thousand head Sinaloa Yucatan Durango 1,503 San Luis Potosi 501 Jalisco Puebla 135 Guanajuato 39 to 88 Less than 39Source: SIAP. 168

FEEDER CALVES: valuable input and star productCalves for fattening are the indispensable input to produce beef 2017 Export of feeder calvesand, for this reason, they also constitute a profitable product withgreat demand of the livestock of our country. (Head)Calf breeding is carried out in different regions of Mexico, with State Calves Heifers Total Arid andproduction systems based on grazing and adapted to the semi-arid zoneenvironmental conditions. This activity provides both the Sonora 262,870 58,263 321,133cattle to be fattened in our country and that to be exported to Cow-calf system, with purethe United States for the same purpose. Chihuahua 177,811 49,298 227,109 European breeds such as Hereford, Angus and Tamaulipas 88,630 16,587 105,217 Charolais. Coahuila 52,690 9,186 61,876 Tropical zone Durango 35,706 3,633 39,339 Dual-purpose system (calf and milk), with Zebuine Nuevo Leon 31,636 1,438 33,074 breeds (Indobrasil, Brahman, Guzerat, Gyr) Rest of the country 45,813 8,811 54,824 and their crossbreeds. Total 695,156 147,216 842,372 General process for the Tempered Zoneproduction of steers for supply Cow-calf system, dominated by Criollo cattle crossbred with European breeds. Calves Mobilization Location of main feedlots Feedlots with greatermustering installed capacity Cattle fattening is also carried out in all regions of the country, Stratum Number of Sum of and although the large produc- feedlots installed capacity Mobilization tion in arid areas stands out, it is Development in also becoming important both 10,000 - 15,000 9 (head) grazing in tropical areas (Veracruz, 14 120,000 Tabasco and Tamaulipas) and in 16,000 - 37,000 9 temperate zones (Michoacan). Over 40,000 32 301,500 Total 1,665,830 2,087,330Fattening Mobilization and Slaughterfinishing in feedlotIn each phase of the production process, Providing calves for meat production systems entails one orlivestock increase their weight and value more mobilizations from the breeding and grazing areas to the feedlots, which can be in a different municipality, state or $ country.Sources: SIAP and SENASICA. 169

Beef in carcassIn 2017, beef production exceeded 1.9 million tonnes; figure 2.6% higherthan that obtained in 2016.2012-2017 National production volume Percentage of the production value by state(thousand tonnes) With a joint production Terennddencia that represents 33.8% of the total, Jalisco, Veracruz 1,940 and Queretaro, generated 33.551 billion MXN in 2017. APvroemraegdeio 1,8031,6672008 2009 2010 20101 2012 2013 2014 2015 2016 2017 San Luis Potosi 1,705 6.1 1,745Top 10 in production volume Jalisco Veracruz 1,804Main producing states 13.0 12.4 1,821 1,807Rank StateVolume (tonnes) Variation (%) Share in the national 1,827 2012-2017 production of livestock 1,845National total2012 2017 1,8791 Veracruz 5.8 100% 1,9272 Jalisco1,820,547 1,926,900 -0.1 Variations %3 San Luis Potosi13.6 9.5% 9.1% 4 Chiapas 258,565 258,228 74.8 5 Sinaloa -8.9 2012 2017 6 Durango 199,620 226,858 -2.1 7 Baja California 71.8 Moderately available 8 Michoacan 65,341 114,245 9.0 9 Chihuahua 2.9 10 Sonora 114,690 104,486 -16.2 -6.5 Rest 103,441 101,220 1.8 Bovines are considered ready for slaughter approximately 24 months after birth. 56,836 97,631 85,173 92,836 77,258 79,470 93,317 78,237 76,982 71,955 689,323 701,733 Annual per capita consumption 2012-2017 Indicators Production Value Producer average price Stock Thousand Million Million tonnes MXN MXN/tonne head 1,927 127,375 66,104 32 15.1 kg15.0 15.2 Annual 1.5 2.6 7.2 4.5 2016-2017 1.5 1.1 13.8 12.5 AAGR Increase 2012-2017National monthly production (%)With similar volumes, 28.5% of the national beef production is generated between January and March. 9.5 9.5 9.5 7.5 7.7 7.8 8.0 8.0 7.9 8.0 8.1 8.5January February March April May June July August September October November December170

Beef in carcassWorld ranking Mexico 6 2017 Mexico figures among the first 2012-2017 Foreign trade th world 10 nations in beef production; 6 2012 producer it contributes three of every 100 Variation (%) 2012-2017 th world tonnes to the world supply. producer 1,926,900 tonnes Beef from the United States Imports Exports Trade balance Imports Exports represents 17.4% of the world 1,820,547 tonnes volume of this livestock product. Votlounmnees 137,143 198,994 61,852 -9.7 40.52012-2017 Foreign trade Value 788 1,130 342 -5.2 51.2 million USDBetween 2012 and 2017, the volume of beef imports from Mexico decreased, going from 152,000 to137,000 tonnes. During the same time frame, the behavior of the exports of this livestock product Increase Decreaseshowed an increase from 142,000 to 199,000 tonnes. A market segment for theCommercial origin-destination increase of the foreign sale of Mexican beef corresponds toThere are eight nations from which Mexico buys this bovine product. However, the country has that of Middle Eastern nations.diversified the destination points of its exports of the species, going from 11 to 13 destinationsbetween 2012 and 2017.1,026,662,048* Japan USA Hong Kong* USD Adequate geographical characteristics for the production Buyer Main Supplier Importer and Exporter Altitude Humidity Temperature Edaphology(Mexican exports) (Mexican imports) 1,500 to 2,500 Constant 14 to 21 °C Fluvisols, cambisols and luvisols soils withForeign trade evolution (million USD) MASL mild slope and depth1,163 1,092 1,094 1,130 Location From 5 to 10km away from human settlements 876 930 999 831 899 870 788 Jalisco, Tamaulipas and the 837 748 907 central zone of the country present the best climatic 731 and geographical conditions for the cattle raising. 532 649 289143 1732008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exports ImportsMonthly distribution of foreign trade (%)Imports Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 7.5 7.0 8.1 7.8 8.6 8.4 8.4 9.7 8.6 8.7 8.4 8.8Exports 8.5 7.7 8.7 7.2 8.7 8.3 8.3 8.4 7.9 9.4 9.0 7.9 Beef in carcass production potential 171

Pork in carcass Percentage of the production value by state A greater technification in the national systems of hog production Sonora allowed the activity to grow at an average annual rate of 3.1% 15.0 from 2012 to 2017.2012-2017 National production volume Jalisco is the main producer of (thousand tonnes) this meat, with revenues of 14.58 billion MXN (2017); Sonora and TTreennddencia Puebla follow, with 9.324 and 6.909 billion MXN, respectively. 1,435 APvroemraegdeio 1,2651,1612008 2009 2010 20101 2012 2013 2014 2015 2016 2017 1,162 1,175Top 10 in production volume Jalisco Puebla 1,202Main producing states 23.4 11.1 1,239 1,284Rank StateVolume (tonnes) Variation (%) Share in the national 1,291 2012-2017 production of livestock 1,323National total2012 2017 1,3761 Jalisco 16.4 100% 1,4422 Sonora1,238,625 1,441,850 27.4 Variations %3 Puebla12.0 6.5% 6.8% 4 Yucatan 236,433 301,148 35.5 2012 2017 5 Veracruz 32.1 Moderately available 6 Guanajuato 233,727 261,757 22.3 7 Michoacan 4.2 8 Chiapas 122,194 165,563 8.9 9 Oaxaca 15.1 10 Queretaro 105,150 138,917 -4.3 7.7 Rest 105,996 129,665 -1.2 The “supreme pork” must reach slightly more than 6 months of age for its commercialization, weighing an average of 124 kilograms. 108,965 113,522 40,771 44,394 24,632 28,343 28,933 27,680 20,861 22,462 210,964 208,399 Annual per capita consumption 2012-2017 Indicators Production Value Producer average price Stock Thousand Million Million tonnes MXN MXN/tonne head 1,442 62,191 43,133 17 17.2 kg17.1 17.3 Annual 3.1 4.8 9.3 4.3 2016-2017 1.7 3.1 9.0 5.7 AAGR Increase 2012-2017National monthly production (%)This product is available throughout the whole year; however, the greatest amount is generated during the first quarter. 9.5 9.4 9.3 7.5 7.6 7.9 7.9 7.8 8.0 8.0 8.3 8.8January February March April May June July August September October November December172

Pork in carcassWorld ranking Mexico 15 2017 One in every 100 kilograms of pork meat 2012-2017 Foreign trade th world produced in the world is Mexican. 16 2012 producer In the world meat production, that of Variation (%) 2012-2017 th world pork represents a greater volume; half of producer 1,441,850 tonnes it corresponds to China. Imports Exports Trade balance Imports Exports 1,238,625 tonnes Votlounmnees 806,707 127,695 -679,012 56.2 79.12012-2017 Foreign trade Value 1,391 538 -853 39.4 42.4 million USDMexican hog production has the challenge of expanding its generating capacity to reduce the volume ofpork meat purchased abroad, but also to broaden and expand its exports to other latitudes. IncreaseCommercial origin-destination The implementation or renegotiation of Mexico’s commercial agreementsCanada and the United States largely satisfy the purchases of this meat that the country makes. Japan and with various regional blocksKorea buy most of Mexico’s exports. Between 2012 and 2017, the nations from which the country bought envisages opportunities for thethis livestock good went from five to six, and the number of buyers of Mexican pork from nine to eleven. exports of pork meat to alternative markets in Asia and Europe. 428,015,872* USA Japan* USD Adequate geographical characteristics for the production Buyer Main Supplier Importer and Exporter Altitude Humidity Temperature Edaphology Location(Mexican exports) (Mexican imports) NA 50 and 75% 17 to 24 °C Fully-slated, isolated 5 to 10km away fromForeign trade evolution (million USD) soils, straw human settlements 1,546 Hog farming is not limited to develop in a 1,391 specific geographical area, as long as it is under 1,289 controlled environments. 1,236 974 998 1,175 877655 538 704318 307 378 445 429 395 432 227 3172008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exports ImportsMonthly distribution of foreign trade (%) Pork in carcass production potential Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 9.0 7.9 8.1 6.9 8.5 8.0 7.8 8.2 8.1 8.9 8.9 9.7Exports 7.1 7.3 8.6 7.3 8.9 7.6 9.2 8.0 8.0 9.8 8.4 9.8 173

OVERVIEW OF MEXICAN PORK EXPORTAmong the Mexican products of animal origin that stand out for their sales abroad, those originating from pork generate 563 million USD in annual currency income, mainly for the export offresh and frozen meat, which has progressively increased in recent years. Exported volume of pork 128 (thousand tonnes) 105 97 84 89 66 71 59 52 58 63 38 45 27222003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 The success of the export of Mexican pork meat relies on:The reproduction, breeding and development in a context of The implementation, throughout the productive chain, of practices andzero or low prevalence of diseases in the animal inventory. standards that generate safe goods with international quality standards. Mexico was declared Classical Swine Fever-free territoryOn August 14, 2012 by In May 2015 by the The capability to offer select cuts for consumers in SAGARPA World Organization for high income countries. Animal Health Main destinations of Mexican pork (tonnes)Countries that granted sanitary recognition to Mexico: Chile (2012) Japan (2015) Canada (2016) United Costa New States (2018) 96 ,000 15,000 11,000 Rica (2018) Zealand (2018) Source: SIAP with data from the General Administration of Customs and the Ministry of Economy.174

FOTO DE PORCINO PENDIENTE 175

Table eggIn recent years, egg production has increased steadily; during the2012-2017 period, it increased at an average annual rate of 3.6%.2012-2017 National production volume Percentage of the production value by state(thousand tonnes) Sonora 4.8 TTerennddencia In 2017, Jalisco and Puebla stood out as leaders in the national production 2,785 of this poultry product; together, they contributed 37.114 billion MXN APvroemraegdeio to the livestock subsector. 2,5082,337 2,360 2,381 2,459 2,318 2,516 2,567 2,653 2,720 2,771 02008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Jalisco Puebla 51.0 19.4Top 10 in production volumeMain producing statesRank State Volume (tonnes) Variation (%) 2012-2017 National total 2012 2017 1 Jalisco 19.5 2 Puebla 2,318,261 2,771,196 33.5 3 Sonora 4.3 4 Yucatan 1,125,670 1,503,293 16.2 5 Nuevo Leon 16.5 6 Guanajuato 480,750 501,254 -17.8 7 Durango -8.1 8 Sinaloa 116,673 135,517 -18.9 9 Coahuila 93.7 10 San Luis Potosi 74,750 87,065 -30.8 The color of the eggshell (white or brown) will depend on 1,494 the breed of the chicken, while the hue of the yolk results Rest 103,416 85,016 10.3 from the bird’s feeding. 85,200 78,264 80,766 65,518 32,365 62,687 62,337 43,134 Share in the national production of livestock 2,499 39,833 100% 153,834 169,616 Annual per capita consumption 2012-2017 Indicators Production Value Producer average price Stock Thousand Million Million tonnes MXN MXN/tonne head 2,771 52,667 19,005 202 22.6 kg22.5 22.7 Variations % Annual -0.2 1.9 8.0 6.0 12.2% 13.1% 2016-2017 1.6 3.6 6.7 2.9 2012 2017 AAGR 2012-2017 Increase DecreaseNational monthly production (%) Moderately availableThe production is distributed homogeneously throughout the year; with greater shares from January to March. 8.4 8.3 9.4 9.1 9.3 7.5 7.7 7.9 8.0 8.1 8.1 8.2 November DecemberJanuary February March April May June July August September October176

Table eggWorld ranking Mexico 4 2017 One in every twenty-seven eggs th world produced in the world is generated 6 2012 producer by Mexican laying hens. 2012 - 2017 Foreign trade th world China stands out as the main producer 2,771,196 tonnes producer of fresh egg in the Variation (%) 2012-2017 world; contributing 35.9 %. 2,318,261 tonnes Imports Exports Trade balance Imports Exports Votlounmnees 22,687 462 -22,226 9.2 -92.12012-2017 Foreign trade Value 28.5 2.1 -26.4 -42.4 -81.6 million USDThe strength of the productive capacity of the Mexican poultry industry allows it to generate egg volumesthat practically cover the internal demand of this livestock product completely, which is why its foreign Increase Decreasetrade is minimal.Commercial origin-destinationDuring 2017, the country acquired 22,687 tonnes of eggs from abroad; of them, 99.7% came from theUnited States. In 2012, Mexican imports of this poultry product came from two countries. Six years later,that number increased to three. 1,330,410* JaJpaónpan Europe and North America are Cuba home to the countries that import more eggs, with Germany making the biggest acquisitions: 20.4 million boxes annually.* USD Buyer Main Supplier Importer and Exporter Adequate geographical characteristics for the production (Mexican exports) (Mexican imports) Edaphology Humidity Temperature Orientation LocationForeign trade evolution (million USD) NA 40 to 70% 24 to 37 °C Coops in dry, well From 5 to 10km drained places away from human settlements 113.7 94.6 76.8 49.4 51.3 Due to its characteristics, the production of table egg is carried out in controlled environments, which allows many states to have a high potential for its production. 28.57.8 11.5 9.6 10.1 11.6 1 0.00002 5.51.5 1.8 3.2 10.5 0.9 2.12008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exports ImportsMonthly distribution of foreign trade (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 5.6 7.8 9.3 8.7 15.2 10.4 9.6 14.8 8.1 5.5 3.1 1.9Exports 9.0 3.0 4.8 12.6 9.0 9.0 13.7 9.0 4.3 5.3 4.3 16.0 Table egg production potential 177

Cow milkThe production of milk in the country continues to show an increasingtrend; from 2012 to 2017, the production volume increased at anaverage annual rate of 1.6%.2012-2017 National production volume Percentage of the production value by state Because of the value generated by(Million liters) dairy production, Jalisco, Coahuila Coahuila and Durango are the leading states; TTreennddencia 11.8 together, they obtained an income of 28.775 billion MXN in 2017. 11,792 APvreormageedio 11,02910,589 10,549 10,677 10,724 10,881 10,966 11,130 11,395 11,608 11,7682008 2009 2010 20101 2012 2013 2014 2015 2016 2017 Durango 10.7Top 10 in production volume JaliscoMain producing states 18.2Rank State Volume (thousand liters) Variation (%) 2012 2017 2012-2017 National total 10,880,870 11,767,556 8.1 13.91 Jalisco 2,024,967 2,306,316 3.8 14.72 Coahuila 1,287,918 1,337,493 11.8 11.83 Durango 1,037,913 1,190,199 3.9 4.74 Chihuahua 979,502 1,095,175 -6.2 Holstein is one of the most common milk cow breeds in Mexico. 17.5 It reaches up to 675 kilograms in weight and an average daily5 Guanajuato 735,616 822,161 5.6 production of 40 liters. 3.96 Veracruz 715,190 743,1827 Puebla 422,768 442,6888 Estado de Mexico 469,315 440,2689 Aguascalientes 367,599 432,041 Share in the national production of livestock10 Chiapas 402,727 425,343 100% Rest 2,437,355 2,532,691 Annual per capita consumption 2012-2017 Indicators Production Value Producer average price Stock Million Million Million liters MXN MXN/liter head 11,768 70,660 6.0 3 98.3 L98.2 98.4 Variations % Annual 0.7 1.4 4.3 2.9 55.4% 54.1% 2016-2017 0.9 1.6 4.6 3.0 AAGR Increase 2012-2017 2012 2017National monthly production (%) Moderately availableWith steady production levels, the availability of milk is present throughout the whole year. 9.3 9.1 9.3 7.6 7.7 8.0 8.4 8.3 8.2 8.2 8.0 7.9January February March April May June July August September October November December178

Cow milkWorld ranking Mexico 14 2017 Mexico’s livestock activities generate a 2012-2017 Foreign trade th world volume of fresh cow milk that represents 16 2012 producer 1.8% of the world total. Variation (%) 2012-2017 th world The contribution of the production of the producer 11,422,593 tonnes United States to the global availability Imports Exports Trade balance Imports Exports of milk represents 14.6%. 10,561,900 tonnes thousaVnodlulimteres 447,250 77,982 -369,268 19.2 93.22012-2017 Foreign trade Value 824 170 -654 -9.8 117 million USDCow milk stands out among the most widely consumed livestock products in Mexico. One quarterof the national available volume is imported from other countries. Mexico also exports this dairy Increase Decreaseproduct; in 2016 and 2017, there was a significant increase in the volume of its trade.Commercial origin-destinationIn 2017, the industrialized milk that the country acquired from abroad came from 21 countries; twoless than in 2012. The United States is Mexico’s main supplier of this dairy product, and Venezuelabuys the largest national exported volume. United States The annual world imports of milk Colombia exceed 13.421 billion liters. In this commercial flow, Germany stands out with the acquisition of the largest volume: 4 million. 84,382,626* Venezuela* USD Adequate geographical characteristics for the production Buyer Main Supplier Importer and Exporter Altitude Humidity Temperature Edaphology(Mexican exports) (Mexican imports) 1,500 to 2,500 Constant 14 to 21 °C Fluvisol, cambisol and luvisol soils MASL of mild slope and depthForeign trade evolution (million USD) Location 5 to 10km away from human settlements793 947 1,012 824 For their adaptation, dairy 508 913 960 cows need temperate climate 692 conditions. In the tropics, 622 725 milk is produced with animals of double purpose, which implies lower dairy yields. 170 Exports Imports64.8 53.5 73.4 86.3 78.1 81.4 83.1 71.8 85.72008 2009 2010 2011 2012 2013 2014 2015 2016 2017Monthly distribution of foreign trade (%) Cow milk production potential Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 6.0 7.8 8.1 7.3 9.5 8.9 8.5 9.9 8.8 8.9 8.5 7.8Exports 4.8 8.8 4.7 4.2 11.6 11.7 13.5 8.6 10.4 8.6 6.0 7.1 179

HoneyIn 2017, national beekeeping activities generated 51,065 tonnes, whichreflected a 7.8% decrease in production compared to the previous year.2012-2017 National production volume Percentage of the production value by state(thousand tonnes) TPrreonmdedio In 2017, Jalisco generated the highest volume and value of honey 57 production with 5,815 tonnes and 280 million MXN, respectively. ATevnedraegnecia 56602008 2009 2010 20101 2012 2013 2014 2015 2016 2017 56 56 Veracruz 58 9.0 59 57Top 10 in production volume Jalisco 61Main producing states 12.8 62 55Rank StateVolume (tonnes) Variation (%) 51 2012-2017 Variations %National total2012 2017 1 Jalisco -12.9 2 Chiapas 58,602 51,065 -2.1 3 Veracruz 7.7 4 Yucatan 5,940 5,815 2.8 5 Oaxaca -58.2 6 Campeche 4,945 5,324 7.8 Chiapas 7 Quintana Roo -51.2 9.6 8 Puebla 4,576 4,704 41.0 9 Guerrero -22.4 Share in the national 10 Zacatecas 10,405 4,351 -10.4 A derivative of this sweetener is honey powder, which is production of livestock 26.9 obtained through the dehydration of the liquid. The export Rest 3,782 4,078 11.8 price of one kilogram can reach a price of 73 MXN. 100% 7,716 3,767 2,159 3,044 3,137 2,435 2,344 2,101 1,637 2,078 11,960 13,368 Annual per capita consumption 2012-2017 Indicators Production Value Producer average price Stock Thousand Million Million tonnes MXN MXN/tonne hives 2,190 42,895 2.0 51 0.2 kg0.1 0.3 Annual -0.3 -7.8 -3.9 4.2 0.3% 0.2% 2016-2017 -0.5 -2.7 1.8 4.6 2012 2017 AAGR 2012-2017 Increase DecreaseNational monthly production (%) Mostly available Moderately available Least or not availableThe highest volumes of honey in the country are generated during April-May and November-December, amounting to 60% of the annual total. 4.6 6.3 8.4 14.8 15.2 6.9 1.9 1.2 2.4 8.3 15.6 14.4January February March April May June July August September October November December180

HoneyWorld ranking Mexico 8 2017 Three out of every hundred kilograms of 2012-2017 Foreign trade th world bee honey obtained in the world come 9 2012 producer from Mexican hives. Variation (%) 2012-2017 th world China generates the highest production producer 51,065 tonnes of this sweetener, contributing 27.5% Imports Exports Trade balance Imports Exports of the international supply. 58,602 tonnes Votlounmnees 1 27,722 27,721 NA -13.5 Value 0.007 1052012-2017 Foreign trade 104.993 NA 3.2 million USDHalf of the sweetener generated by Mexican apiculture is destined for the foreign market.The lower domestic production of recent years determined a fall in the exportable volume. Does not apply Increase DecreaseNonetheless, the rebound in the sale price brought more foreign currency to the country. Nine of the ten main honeyCommercial origin-destination importing countries in the world are Mexico’s buyers. Poland, withOf the honey exported volume, 41.2% is destined for the German market, another 18.6% for more than 26,000 annual tonnesthe United States and the remaining 40.2% for 26 different countries. Between 2012 and 2017, acquired abroad could representthe international destinations for this Mexican apiculture product went from 22 to 28. an additional market for Mexico. United Kingdom 36,846,079* Germany United States Adequate geographical characteristics for the production * USD Main Supplier Importer and Exporter Altitude Rain Temperature Location Buyer (Mexican imports) 0 to 3,000 600 to 2,500 12 to 25 °C Abundant vegetation, surface water supplies(Mexican exports) MASL mmForeign trade evolution (million USD) Edaphology NA 156 147 101 112 105 Factors such as flowering periods, the regions where bee83.8 85.7 93.7 hives are located and the climate 90.3 determine characteristics such as 81.2 acidity, crystallization, color and density, among others. That is, the types and qualities of honey.0.008 0.003 0.003 0.004 0 0.021 0.003 0.015 0.01 0.007 Exports Imports2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Monthly distribution of foreign trade (%) Honey production potential Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 52.9 0.0 47.1Exports 7.5 4.0 8.0 5.3 11.5 19.7 17.8 9.6 6.1 4.1 2.1 4.3 181

182

Fishing Subsector 183

TunaSome climate events in recent years have affected the production of tuna in Percentage of the production value by statenational waters. Thus, the production of the species decreased at an averageannual rate of 0.2% during the 2012-2017 period. Baja California 23.52012-2017 National production volume(thousand tonnes) About half of the production of tuna is obtained in Sinaloa. During 2017, Treennddencia the state generated a production value of 1.12 billion MXN. 127 APrvoemraegdeio 115912008 2009 2010 20101 2012 2013 2014 2015 2016 2017 Sinaloa 106 46.3 117 110Top 10 in production volume 98Main producing states 129 162Rank StateVolume (tonnes) Variation (%) 130 2012-2017 114National total2012 2017 971 Sinaloa -1.1 Variations %2 Chiapas97,87296,793-7.9 3 Colima 30.4 4 Baja California 56,470 52,013 -44.3 5 Veracruz 190 6 Nayarit 13,926 18,162 -8.6 7 Oaxaca 423 8 Guerrero 21,226 11,818 213 Chiapas 9 Baja California Sur 1,041 14.8 10 Jalisco 3,455 10,026 -3.8 24.4 Share in the national Rest 1,618 1,479 30.7 The fishing nets used by tuna boats can measure slightly over production of fisheries 2 kilometers in length and is ideal for purse seine fishing. 227 1,186 100% 305 955 49 555 476 458 69 85 53 58 Annual per capita consumption 2012-2017 Indicators Volume Value Producer average price Live weight Landed weight Million (thousand tonnes) (thousand tonnes) MXN MXN/tonne 2,416 97 96 25,149 17.10 kg.16.09 17.21 Annual -15.1 -14.9 -22.4 -8.8 5.8% 4.7% 2016-2017 -0.2 -0.3 16.9 17.2National monthly production (%) 2012 2017 AAGRThe largest production of tuna is obtained from March to July, representing 57%. 2012-2017 Increase Decrease Mostly available Moderately available Least or not available 1.3 2.8 12.9 10.6 12.8 10.2 10.5 8.0 9.3 5.3 12.6 3.7January February March April May June July August September October November December184

TunaWorld ranking Mexico 13 2017 The fishing and aquaculture 2012-2017 Foreign trade th world activity in Mexico contributes 11 2012 producer 2 out of every 100 tonnes of tuna Variation (%) 2012-2017 th world generated in the world. producer 96,793 tonnes Indonesia supplies 18.5% of the Imports Exports Trade balance Imports Exports world total. 97,872 tonnes Votlounmnees 82,504 45,793 -36,711 79.7 28 2282012-2017 Foreign trade Value 217 11 73 53.7 million USDOf the tuna imported by Mexico during 2017, 80.3% corresponded to frozen whole fish. Inthe country’s exported volume, processed tuna represented 61.7%. IncreaseCommercial origin-destination In 2017, global trade of this fish exceeded five million tonnes. Thailand is one of theIn 2017, Mexico imported this fishing good from 28 nations, with purchases made to the most relevant buyers; it acquired 240,000United States, China and South Korea standing out. In that year, Mexican tuna was exported tonnes from other countries. However,to 31 countries; 11 more than in 2012. Mexico’s foreign sales potential lies in Italy. United Japan States 64,811,838* Venezuela* USD Buyer Main Supplier Importer and Exporter Adequate geographical characteristics for fishing(Mexican exports) (Mexican imports) Foreign trade evolution (million USD) Depth Acidity Temperature Dissolved Salinity level 0 to 200 pH of 12 to 18 °C NA oxygen meters 7.8 - 8.2 5.0 a 10 mg/lt 323 228 The littorals of the north of the Mexican 217 Pacific have the ideal geographical 175 179 conditions for the production of tuna. 148 147 125 132 79.5 84.4 12665.5 74.7 101 45.8 81.359.9 13.2 412008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exports ImportsMonthly distribution of foreign trade (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 8.8 6.3 6.0 8.8 9.7 4.3 3.4 9.0 14.9 2.7 12.9 13.2Exports 5.9 12.4 9.3 10.8 11.1 10.9 10.0 6.1 7.0 5.7 5.6 5.2 Tuna production potential 185

MEXICAN AQUACULTURE Mexico ranks 5th in the world production of bream under controlled systemsAquaculture is the cultivation of aquatic organisms, both in Of every 100 kg:coastal areas and inland, which involves interventions in thebreeding process to increase production. 1st China produces 33 2nd Bangladesh produces 24For every 10 Kg of live weight Aquaculture production by species 3rd Brazil produces 17of bream, the contribution is: 4th Philippines produces 6 Others 5th Mexico produces 4Chiapas Rest of the country Jalisco Oyster 7.6% Nile tilapiacontributes2.3 kg 2.0 kg. 2.1 kg 11.3% 37.4 Bream 36.1 7.6% Shrimp CarpTabasco Michoacan0.4 kg 1.2 kg Sinaloa Veracruz Nayarit 0.8 kg 0.6 kg 0.6 kg Redbreast tilapia Rocky mountain tilapia Tilapia Nutritional Value Tilapia Stirling tilapia Blue tilapia Genus 100 g of Tilapia contain:20.08 g protein Wami tilapia1.70 g fat96 cal, 5% of the recommended daily value50 mg CholesterolMineralsPotassium (302 mg)Phosphorus (170 mg)Sodium (52 mg) fluorine-freeVitamin B-3 (3,9 mg)Vitamin D (3,10 mg)Vitamin B-9 (24 mg) Orange Mozambique Florida red tilapia tilapia186Source: SIAP, with data from CONAPESCA and FAO Fisheries and Aquaculture Department.

Aquaculture Hydroponics Aquaponic system balanceAQUAPONICS 4 Achieving balance between sh, plants and bacteria, implies 1 an adequate management in the selection of quantity andbSeutswtaeinenabtlheepcruoldtiuvcattiioonn density of species, crops and optimal supply of nutrients forofafrpmlainngts and fish each stage of the reproductive cycle. Aquaponics entail the Aim: integration of two cultivation methods: aquaculture, which To produce fresh, safe and involves growing aquatic nutritious foods in a controlled animals, and hydroponics, for manner. the production of vegetable crops based on nutritious 3 To obtain two products through a solutions. In this system, both single source of nitrogen (food and cultivations bene t from the sh feces). principles of water recycling and usage of Advantages: nutrients. Does not require the use of How does it work? fertilizers and pesticides. Possibility of creating self- 1 The sh eat the food and 2 turn the consumption or communal economies. nitrogen of the proteins in a waste known as \"ammonia nitrogen\". This in turn, along with 2 other waste generated by the sh 3 is used The daily monitoring of the health status of sh and plants will provide the by bacteria, thus becoming nutrients which are now available for the plants. Once the necessary information on the system nitrates are formed, the plants absorb them balance. Diseases and nutritional de ciencies and/or mortalities are translated as through their roots and 4 water returns to symptoms of an unbalanced system. the sh farm.What can you grow? What kinds of fish can be raised?Vegetables, medicinal and culinary plants. The most common sh is bream or tilapia, because it is a very resistant species that can withstand high population density.Crop species Germination length Growth time Temperature (°C) Sun exposure Species Vital/Optimal % of Protein Growth time Basil of time 5-6 weeks Common carp temperature in food 6-7 days (Cyprinus carpio) 20-25 Moderate/High 4 to 34/25 to 30 30 to 38 600 gr in 10 monthsLettuce 3-6 days 4-5 weeks 15-22 Moderate/High Nile tilapia 14 to 36/27 to 30 28 to 32 60m0 gornitnhs7 (Oreochromis niloticus)Peppers 8-12 days 2-3 months 15-30 High Rainbow trout 10 to 18/14 to 16 42 1 kmgoinnt1h5s (Oncorhynchus mikyss) Tomatos 4-7 days 2-3 months 15-25 High Giant freshwater prawn 18 to 34/26 to 29 35 30 gr in 4Source: SIAP. (Macrobrachium rosenbergii) months 187

ShrimpEven though in 2017 shrimp production decreased 1.5% comparedto the previous year, the volume achieved was larger than the224,000 tonnes obtained in 2015.2012-2017 National production volume Percentage of the production value by state(thousand tonnes) Sonora TTreennddencia 36.9 Shrimp farming in Sinaloa and Sonora allowed a 206 production value of 13.368 billion MXN in 2017. APvreomraegdeio 186 196 0 Sinaloa 1962008 2009 2010 2011 2012 2013 2014 2015 2016 2017 36.5 167Top 10 in production volume 184 NayaritMain producing states 162 9.9 128Rank State 158Volume (tonnes) Variation (%) 224 2012-2017 National total 2252012 2017 1 Sinaloa 222 37.0 2 Sonora Variations %161,852 221,69527.4 3 Nayarit 69.9 4 Tamaulipas 63,870 81,355 50.7 5 Baja California Sur 8.2 6 Campeche 47,116 80,030 18.7 7 Colima -36.3 8 Veracruz 13,831 20,837 90.9 9 Chiapas 61.8 10 Oaxaca 12,205 13,210 1.4 The main process to which Mexican shrimp is subject for its 26.7 commercialization abroad is freezing; being the absence of head, Rest 7,652 9,081 -32.7 shell and“vein”, whether cooked or raw, a defining characteristic. 7,647 4,871 1,946 3,714 2,020 3,268 1,939 1,966 Share in the national production of fisheries 1,549 1,962 100% 2,078 1,399 Annual per capita consumption 2012-2017 Indicators Volume Value Producer average price Live weight Landed weight Million (thousand tonnes) (thousand tonnes) MXN MXN/tonne 18,209 222 210 86,843 9.9 1.6 kg1.5. 1.7 Annual -1.5 -2.0 19.0 12.1 9.6% 10.7% 2016-2017 6.5 7.4 10.8 2012 2017 AAGR 2012-2017 Increase Decrease National monthly production (%) Mostly available Moderately available Least or not available Slightly more than 66% of the annual production of this crustacean is generated during the last four months of the year. 3.4 3.5 3.2 1.7 2.9 4.9 6.7 7.4 14.9 23.0 17.9 10.5 January February March April May June July August September October November December188

ShrimpWorld ranking Mexico 7 2017 The capture and aquaculture of this 2012-2017 Foreign trade th world decapod in Mexican waters allow the 8 2012 producer country to supply 2.5% to the world Variation (%) 2012-2017 th world availability of shrimp. producer 221,695 tonnes Of the 9.2 million tonnes of shrimp Imports Exports Trade balance Imports Exports that are generated in the world, China 161,852 tonnes contributes the largest volume; 41.8% of Votlounmnees 19,926 38,238 18,312 41.7 38.7 this total amount.2012-2017 Foreign trade Value 119 385 266 58.3 46.5 million USDThe exported volume of this crustacean during 2017 represented 16.8% of the total production of thecountry. During the aforementioned year, the country imported 19,926 tonnes, mainly of cooked shrimp. IncreaseCommercial origin-destination The United Arab Emirates, South Korea, Venezuela andOf the shrimp that Mexico acquires from abroad, 47.7% comes from China. On the other hand, 77.1% of the Denmark make significantMexican exports of the species are acquired by the United States. The destination nations of this national external purchases of thisfishery product went from 13 in 2012, to 16 in 2017. crustacean; these countries are emerging as potential 311,201,044* markets for Mexican sales. USA FrFarnacniace Vietnam* USD Buyer Main Supplier Importer and Exporter(Mexican exports) (Mexican imports) Foreign trade evolution (million USD) Adequate geographical characteristics for fishing 385 Depth Acidity Temperature Doisxsyoglveend Salinity level 0 to 200 pH of 20 to 35 oC 4.0 to 10 mg/lt 5 to 35 ups 324 319 333 meters 7.0 - 9.0 295 274 268 313304 263 Due to its geographical characteristics, the coastline 239 of Sinaloa is suitable for the 159 171 production of shrimp.116 119 97.6 96.9 120 68.6 75.52008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exports ImportsMonthly distribution of foreign trade (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 6.6 11.0 9.1 9.4 12.7 8.7 9.4 8.8 7.6 5.9 5.0 5.8Exports 8.5 4.9 4.0 2.9 1.5 1.1 2.3 5.7 7.9 21.7 23.9 15.6 Shrimp production potential 189

MEXICAN SHRIMP:crustacean that generates foreign currencyOf the shing products obtained in Mexican waters, shrimp is particularly important because of the contribution offoreign currency generated by its commercialization in foreign markets. One factor for the international acceptanceof this Mexican crustacean is the variety of sizes it comes in. In the world: •152 countries exporting this crustacean •2 million 862 thousand tonnes exported •22.934 billion USD is the value of exports •665 thousandtonnes imported annually by the United States, the main buyer In Mexico: •56.8% of shrimp is generated through aquaculture •14th world exporter •45.4% of the foreign currencies generated by Mexican shing come from the exports of this species •7th shrimp supplier of the United StatesColossal shrimp Size standards in foreign trade Miniature shrimp Colossal U15 Headless pieces Mexican shrimp Extra jumbo 16/20 per kilogram volume imported by Jumbo 21/25 the United States Extra large 26/30 Less than 33 Large 31/40 33 to 45 (tonnes) Medium 41/50 46 to 55 Small 51/60 56 to 66 3,725 Extra small 61/70 67 to 88 4,244 Miniature >70 89 to 110 5,553 111 to 132 5,015 133 to 154 4,603 155 and more 2,306 1,079 286 112Note: In US size designations the number refers to the threshold of minimum and maximum pieces of the crustacean per pound. The \"U\" refers to the word \"under\" which means \"less than\".Source: SIAP with data from the National Oceanic and Atmospheric Administration U.S. Department of Commerce 2017, WTO 2016 and the Ministry of Economy. 190

SHRIMP FISHING SURVEILLANCE:Geo-technologies for fisheries management In 2017, the SIAP, in coordination Sinaloa with CONAPESCA, carried out the monitoring of the beginning of Drone: Matrice M600 Pro shrimp shing season in the bays and lagoons of the state of Sinaloa. In addition to conducting surveillance ights with drones, the start of Accounting of small boats called \"Pangas\" detected with\"pangas\" through satellite imagery satellite imagery activities was also witnessed at 4:00 am by using thermal cameras. With satellite imagery collected by the ERMEX antenna, it was possible Source: SIAP with data from CONAPESCA. to identify a maximum of 2,153 191 pangas shing the crustacean during the rst week after the ban was lifted.ERMEX antenna

LobsterIn 2017, lobster catch was carried out in 16 states of the country. Percentage of the production value by stateTogether, they achieved a production volume of 4,661 tonnes, whichtranslated into an increase of 14.8% over the previous year. Baja California 17.42012-2017 National production volume(thousand tonnes) Treennddencia Baja California Sur, the leading state in the capture of this 5 crustacean, obtained a production value of 390 million MXN in 2017. APvroemraegdeio 4 Baja California Sur Yucatan 45.5 15.032008 2009 2010 200.0101 2012 2013 2014 2015 2016 2017 2Top 10 in production volume3Main producing states3 3Rank State 4Volume (tonnes) Variation (%) In Mexico, the minimum landing size for lobster 4 2012-2017 is 135 millimeters in abdominal length. National total 52012 2017 1 Baja California Sur 4 53.3 Share in the national 2 Baja California 53,040 4,661 20.2 production of fisheries 3 Yucatan Variations %1,716 2,06225.9 4 Quintana Roo 282 100% 5 Guerrero 600 755 30.4 6 Nayarit 168 644 NA 7 Jalisco 376 490 186 8 Sonora 255 9 Michoacan 0 223 475 10 Sinaloa 58 167 91.7 35 123 25.9 Rest 9 55 336 28 53 40 51 9 38 Annual per capita consumption 2012-2017 Indicators Volume Value Producer average price Live weight Landed weight Million (thousand tonnes) (thousand tonnes) MXN MXN/tonne 857 186,362 5 5 25 g24 26 Annual 14.8 14.9 4.1 -9.4 0.2% 0.2% 2016-2017 8.9 9.2 14.6 4.9 2012 2017 AAGR 2012-2017 Increase DecreaseNational monthly production (%) Mostly available Moderately available Least or not availableJust over 64% of the lobster available throughout the year is captured from September to December. 11.0 7.2 2.6 1.7 1.6 1.8 7.0 3.0 12.4 21.8 15.8 14.1January February March April May June July August September October November December192

LobsterWorld ranking Mexico 15 2017 Lobster fishery in Mexico contributes 2012-2017 Foreign trade th world 1.3% of the global volume. 16 2012 producer Canada captures 28.6% of the total Variation (%) 2012-2017 th world 4,661 tonnes crustacean from the countries that producer perform this fishing activity. Imports Exports Trade balance Imports Exports 3,040 tonnes Votlounmnees 343 1,902 1,559 672 144 Value 6.6 88.82012-2017 Foreign trade 82.2 381 217 million USDMexico’s exported volume of this fishing species is minimal, however, the high prices paid in the internationalmarkets for the good allow the country an income of 88.8 million USD in foreign currency. IncreaseCommercial origin-destinationWorldwide, there are 120 countries that export lobster; in the case of Mexico, the market with the largestpurchase of the crustacean is Hong Kong, with 842 tonnes. United 38,150,796* Mexico exports the crustacean States Hong Kong to the four largest importing countries, although the Vietnam United Arab Emirates represents a commercial window of opportunity for the sale of Mexican lobster.* USD Buyer Main Supplier Importer and Exporter(Mexican exports) (Mexican imports)Foreign trade evolution (million USD) Adequate geographical characteristics for fishing 88.8 Depth Acidity Temperature Dissolved Salinity level 0 to 200 NA 77.6 Warm waters NA oxygen 72 meters NA42.6 The coastlines of the 36.5 Pacific are suitable for lobster catch, representing 28 an opportunity to potentiate its production. 22.5 19.1 22.6 2.5 5.2 6.6 17.5 1.4 2 0.51.3 1.7 0.5 0.2 Exports Imports2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Monthly distribution of foreign trade (%)Imports Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1.0 4.9 10.8 8.9 18.1 16.8 7.7 3.4 6.8 4.8 2.0 14.8Exports 8.1 5.6 3.9 0.2 0.4 0.1 1.7 0.9 7.5 26.6 20.5 24.5 Lobster production potential 193

BreamOne of the fishing species with the greatest dynamism of production isbream. During the last six years, its production registered an importantaverage growth: 16.1% annually.2012-2017 National production volume Percentage of the production value by state(thousand tonnes) TTernednedncia The national fishery of bream generates a production value 176 of 3.248 billion MXN, of which Jalisco contributes 0.6 billion. PArvoemreadgieo 110 752008 2009 2010 20101 2012 2013 2014 2015 2016 2017 77Top 10 in production volume 81Main producing states 76 78Rank State 102Volume (tonnes) Variation (%) Jalisco 129 2012-2017 18.5 National total 1352012 2017 1 Jalisco 183 111 Michoacan 2 Chiapas 16477,547 163,714 716 12.1 3 Michoacan Variations % 143 4 Nayarit 4,170 34,011 79.7 5 Veracruz 57.4 6 Sinaloa 10,962 26,621 10.5 7 Tabasco 97.9 8 Guerrero 13,330 23,954 83.7 Chiapas 9 Estado de Mexico 280 15.2 10 Hidalgo 7,990 12,577 337 14.8 Share in the national Rest 11,292 12,476 49.4 In Mexico, under optimal conditions, tilapia can reach an production of fisheries approximate weight of between 500 and 700 grams 6,017 11,906 in a period of eight to ten months. 100% 3,840 7,053 4.6% 7.9% 2012 2017 1,533 5,819 Moderately available 1,100 4,811 3,991 4,581 13,324 19,906 Annual per capita consumption 2012-2017 Indicators Volume Value Producer average price Live weight Landed weight Million (thousand tonnes) (thousand tonnes) MXN MXN/tonne 3,248 20,265 164 160 2.0 kg1.9 2.1 Annual -10.6 -11.0 8.2 21.7 2016-2017 16.1 16.7 18.6 1.6 AAGR 2012-2017 Increase Decrease National monthly production (%) The systems used for bream production allow the species to be available throughout the whole year. 8.0 8.5 9.3 8.2 6.7 7.1 8.1 8.2 8.1 9.4 9.0 9.4 January February March April May June July August September October November December194

BreamWorld ranking Mexico 9 2017 Mexico’s fishery activities obtain 2012-2017 Foreign trade th world a volume of bream that represents 10 2012 producer 2.8% of the world total. Imports Variation (%) 2012-2017 th world China is the leading producer of producer 163,714 tonnes bream; it generates a volume that Votlounmnees 63,706 Exports Trade balance Imports Exports contributes 28.2% to the world 77,547 tonnes supply of this fishing good. 3,097 -60,609 66.5 3,7272012-2017 Foreign trade Value 143 19.9 -123.1 28 3,211 million USDIn order to meet the high level of tilapia consumption in Mexico, the good must be purchased abroad.However, this market reality poses an opportunity for the national aquaculture production of the species. IncreaseCommercial origin-destination In 2017, more than 500,000 tonnes of bream were traded betweenChina is the nation from which Mexico buys the largest amount of bream; in 2017, 62,727 tonnes were countries in the world; the Unitedacquired, for which 141.5 million USD were paid. States and Mexico are the largest importers of this fishing good. 19,763,505* USA Taiwan Vietnam* USD Buyer Main Supplier Importer and Exporter(Mexican exports) (Mexican imports)Foreign trade evolution (million USD) Adequate geographical characteristics for fishing Depth Acidity Temperature Dissolved Salinity level 0 to 200 NA 201 Warm waters NA oxygen 180 meters NA 141 152 143 The littorals of the 99.8 111 Mexican Pacific and the 138 state of Veracruz have the appropriate physical-72.9 geographical conditions for the production of bream. 57.4 29.1 31.9 23.5 19.9 Exports Imports0.1 0.04 0.1 0.05 1.19 0.6 10.4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Monthly distribution of foreign trade (%) Bream production potential Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecImports 8.7 8.5 6.3 7.2 7.4 7.7 7.8 10.2 9.2 9.7 9.0 8.3Exports 8.8 8.2 10.6 8.6 8.8 3.5 7.8 9.9 6.8 6.1 9.1 11.8 195

Octopus Percentage of the production value by state From 2012 to 2017, octopus catch in the country grew at an average Of the 37,192 tonnes of annual rate of 3.7%. However, during the last year the production of the octopus that are caught in species decreased by 4.4% compared to the volume obtained in 2016. the country, Yucatan, the leading state, contributes2012-2017 National production volume 67.5% with a value of(thousand tonnes) 1.256 billion MXN. TTernednedncia 43 PArvoemraegdeio 2913 Yucatan 26 65.5 23 282008 2009 2010 20101 2012 2013 2014 2015 2016 2017 Baja California Sur 31 3.1 25Top 10 in production volume 36Main producing states Campeche 38 24.8 39 37Rank StateVolume (tonnes) Variation (%) Variations % 2012-2017 National total 2012 2017 1 Yucatan 20.1 2 Campeche 30,958 37,192 30.3 3 Baja California Sur -14.3 4 Guerrero 19,280 25,122 124 5 Jalisco 305 6 Veracruz 9,850 8,444 104 7 Sonora 184 8 Quintana Roo 551 1,235 72.8 9 Nayarit -24.9 10 Baja California 131 531 1,778 A part of Mexican octopus aquaculture is performed in an artisanal way 1.2 through the “garateo” method –known as handline fishing– which relies Rest 219 447 26.3 on the use of “jimbas” or poles to which baited lines are attached. 108 307 157 271 308 231 11 216 Share in the national production of fisheries 179 181 100% 164 207 Annual per capita consumption 2012-2017 Indicators Volume Value Producer average price Live weight Landed weight Million (thousand tonnes) (thousand tonnes) MXN MXN/tonne 1,918 55,003 37 35 0.2 kg0.1 0.3 Annual -4.4 -4.5 55.2 62.5 1.8% 1.8% 2016-2017 3.7 3.8 19.7 15.3National monthly production (%) 2012 2017 AAGRThe largest capture of octopus in the country takes place from August to December. 2012-2017 Increase Decrease Mostly available Least or not available 0.5 0.5 0.5 0.5 0.6 0.7 0.7 14.7 19.6 23.6 21.3 16.8January February March April May June July August September October November December196

OctopusWorld ranking Mexico 3 2017 One in every ten octopuses captured 2012-2017 Foreign trade rd world in the world comes from Mexican 3 2012 producer aquaculture. Variation (%) 2012-2017 rd world From the world’s oceans 411,000 tonnes of producer 37,192 tonnes this species are captured every year; those Imports Exports Trade balance Imports Exports of China represent 33.4%. 30,958 tonnes Votlounmnees 661 7,183 Value 3.6 56.5 6,521 44.8 -8.12012-2017 Foreign trade million USD 52.9 37.5 20.9National octopus fishery has not yet reached again its historical level; this situation has limited the Increase Decreasevolume that Mexico traditionally exported. Mexican octopus is present inCommercial origin-destination seven of the ten main importing countries of said product. SouthMexico sells octopus to the three largest importing countries of this fishing good: Spain, Japan and Korea, with more than 84,000Italy. In the last six years, 16 nations have brought the national capture to their tables. tonnes imported in 2017, represents an important market United 24,098,879* Japan for this product. States Italy Spain* USD Main Supplier Importer and Exporter Buyer (Mexican imports) Adequate geographical characteristics for fishing (Mexican exports)Foreign trade evolution (million USD) Depth Acidity Temperature Dissolved oxygen Salinity 0 to 1,500 NA 105.3 NA They are located in the intertidal zones, living between level meters rocks, coral reefs or sea grasses NA 68.5 The octopus is a species that breeds abundantly in the 56 61.3 56.5 maritime region of the Gulf of Mexico; the two states 57.2 with the largest fishery are located in this region. 46.7 197 30.5 30.6 Exports12.1 Imports 3.5 2.7 0.8 1 2.6 2.8 1.3 1.3 0.9 3.62008 2009 2010 2011 2012 2013 2014 2015 2016 2017Monthly distribution of foreign trade (%)Imports Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 8.1 11.0 9.2 20.5 9.4 7.6 18.3 4.6 5.5 1.7 0.4 3.7Exports 3.8 2.1 1.3 0.9 0.3 0.3 0.2 3.3 11.2 23.5 25.0 28.1 Octopus production potential

SardineEven though there was a fall in the national capture of the 2014-2016 Percentage of the production value by statetriennial, in 2017 the national fishery recovered, and as a result, it had anincrease of 63.2% with respect to the volume captured the previous year. Baja California 20.72012-2017 National production volume Sonora(thousand tonnes) 52.9 PArvoemraegdeio In 2017, the value generated by the capture of sardine in Sonora, 662 Baja California Sur and Baja California, was 520 million MXN; Terennddencia 88.9% of the national total. 490 8162008 2009 2010 20101 2012 2013 2014 2015 2016 2017 Baja California Sur 873 15.2 630Top 10 in production volume 684Main producing states 722 728Rank State 563Volume (tonnes) Variation (%) 444 2012-2017 National total 4422012 2017 1 Sonora 721 -0.1 2 Baja California Variations %721,735 720,888-6.0 3 Baja California Sur 113 4 Sinaloa 409,767 385,248 18.0 5 Nayarit -46.7 6 Yucatan 68,520 146,236 59,976 7 Veracruz 66,808 8 Colima 90,829 107,165 183 Pacific sardine, California or northern anchovy, Pacific anchovy, 9 Oaxaca -3.1 Pacific or California jack mackerel, Pacific thread herring, Japanese 10 Campeche 152,522 81,274 NA anchovy, Chub mackerel and Shortjaw leatherjacket, are names of -96.1 the different species of sardine from Mexican pelagic fishery. Rest 1 571 -90.2 0 233 48 136 23 23 01 Share in the national production of fisheries 14 1 100% 11 1 Annual per capita consumption 2012-2017 Indicators Volume Value Producer average price Live weight Landed weight Million (thousand tonnes) (thousand tonnes) MXN MXN/tonne 584 919 721 636 5.7 kg.5.6 5.8 Annual 63.2 60.5 40.5 -12.4 42.8% 34.8% 2016-2017 0.0 0.4 -0.7 -1.1 National monthly production (%) AAGR In national waters, there is a greater catch of this species in June, with 12.2%. 2012-2017 Increase Decrease 2012 2017 Mostly available Moderately available Least or not available 9.9 9.1 9.6 7.5 9.4 12.2 9.8 5.5 3.5 4.9 8.9 9.7 January February March April May June July August September October November December198