Letter calls for improved rail service to support agricultural trade into Mexico
The Ag Policy Committee of the American Malting Barley Association (AMBA), a trade organization representing end users of malting barley including maltsters, brewers, and distillers, recently signed onto a letter addressed to officials within the federal administration highlighting the current rail service capacity challenges that are hindering trade potential between U.S. and Mexico. The increased demand for rail service coupled with insufficient investment in rail infrastructure has led to embargoes, congestion, and slowed servicing of U.S. agricultural products by Ferromex, a main rail carrier in Mexico. Over $30 billion in U.S. agricultural products have been exported to Mexico in the past year, making Mexico the largest export market for U.S. agricultural products. Over 20 organizations signed onto the letter with AMBA representing several grain interests throughout the U.S. Efforts were led by the Ag Transportation Working Group of the National Grain and Feed Association. Roughly two-thirds of grain exported from the U.S. to Mexico moves by rail so these limitations put great strain on the supply chain. The competitive advantage of proximity is lost when rail is unreliable, which has been further impacted by migrant disruptions at the U.S. southern border. Ag Transportation Working Group Letter on Rail Service in Mexico as it Relates to Ag Trade
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