Mexico

     In-depth analysis of investment cases
         Key financial and economic data
     Opportunities and impact highlights
Mexico 2026

INVESTMENT PROFILE
1.275M
(in USD) Total Investment
12.70%
Internal rate of return
395,706,659
(in USD) Total NPV

SUSTAINABILITY BENEFITS
66,050
Direct beneficiaries
3,741
(in USD) Income increase per capita
-1,480,000
tonnes GHG impact

Mexico has a portfolio of investment opportunities in strategic agro-industrial and bioenergy chains, aimed at increasing the added value of production and improving the competitiveness of the rural sector. The proposal prioritizes the integration of producers through territorial approaches in the southeast of the country, taking advantage of agroecological advantages and strengthening their link with high-value energy markets.

The prioritized chain responds to a complementary logic of value generation: bioenergy development to strengthen energy security and capture new opportunities in the transition to clean fuels.

The goals for 2030 combine complementary investments in sugarcane, the integration of dehydration plants in the most efficient production mills in the country.

The approximate amount of these investments reaches USD 1.275 billion, impacting more than 240 thousand beneficiaries, both direct and indirect, generating more than 72 thousand new jobs and improving the marketing conditions of sugarcane producers, underpinning the national energy transition through the most efficient agro-industrial network in the country.

Geospatial Typologies

Agro-informatics connects information technology with the management, analysis and application of agricultural data to indentify territories with untapped agrifood potential and design more accurate and targeted agrifood interventions. The use of new technologies and techniques in agriculture, such as satellite imagery, remote sensing, and geographic information systems, enable the transformation of data into actionable information.

POVERTY
POTENTIAL
EFFICIENCY
Poverty
Potential
Efficiency
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Investment cases in the country

Investment cases and interventions

Hand in Hand initiative

Sugar cane

INVESTMENT
USD 1,275,000,000
INTERNAL RATE OF RETURN (%)
12.7%
NET PRESENT VALUE
USD 395,706,649
DIRECT BENEFICIARIES
66,050
INDIRECT BENEFICIARIES
174,300
INCOME INCREASE PER CAPITA
3,741 USD/person
EMISSION REDUTION (EXACT)
-1,480,000 tCO₂e

Sugarcane cultivation in Mexico is a historical pillar of rural development and an economic engine of the country's tropical regions. Annually, the sector produces an average of 57 million tons of sugarcane; However, the historical dependence on table sugar export quotas and the persistent drought conditions of recent years have reduced the profit margins of the mills and, therefore, of rural producers.

The volatility of sugar prices and the growth in global demand for biofuels generate an opportunity for productive reconversion. In this context, sugarcane presents competitive advantages as an input for the production of lower carbon intensity fuels, with access to expanding energy markets.

This scenario sets up a large-scale investment opportunity based on the development of a state-of-the-art integrated biorefining system. The strategy includes the construction of six anhydrous ethanol plants, articulated with three Alcohol-to-Jet (AtJ) modules for the production of Sustainable Aviation Fuel (SAF), capturing value in one of the fastest growing energy markets globally.

With a processing capacity of up to 12 million tons of sugarcane per year and a production of 745 million liters of ethanol, the project will progressively convert up to 50% into 223.5 million liters of biokerosene, consolidating a new industrial platform for the country's energy transition.

Resources

FAO's Hand-in-Hand Initiative
21/12/2023

The Hand-in-Hand (HIH) Initiative supports the implementation of nationally led, ambitious programmes to accelerate agrifood systems transformations...

In the Media

Contacts

For more information, please contact the Hand-in-Hand team