Unveiling the future of Agribanking: Banorte

In this exclusive interview, we delve into the dynamic world of agricultural banking in Mexico with Osvaldo Brondo Menchaca, Deputy General Manager, Specialist Banks at Grupo Financiero Banorte. As Mexico's agricultural sector experiences significant growth and transformation, Osvaldo provides invaluable insights into the unique challenges facing the industry and the role Banorte plays in supporting sustainable practices, fostering partnerships, and leveraging technological advancements for the benefit of farmers and related businesses.


Could you briefly provide insights into the agricultural banking landscape in your region, highlighting any unique challenges the industry has to cope with?

Agricultural banking in Mexico has been growing substantially over the past 10 years. According to information provided by the Mexican Banking Association (ABM), there are 21 banks and a lot of other regulated and non-regulated financial institutions participating in financing agricultural activities in the country.

Mexico has a lot of potential in terms of high value products for export to the US and the rest of the world. Products like avocadoes, tequila, berries, coffee, pork meat and others have a lot of interest in worldwide markets.

On the other hand, Mexico has a lot of products that we have to import from different countries to fulfil internal demand, like basic grains. Domestic production of the imported goods presents big opportunities for the families participating in this industry.

There are many other challenges in the industry, such as access to water and new technology and infrastructure for agriculture, climate change, national security and new public policies regarding financing and guarantees.

Banorte’s loan portfolio at the end of the 2Q23 has more than 4,000 active loans and more than 800 clients, with presence across the 32 states of the country. Our portfolio has been growing at around 12% (CAGR) over the last five years.