MEXICO - Happiness is arriving, write Dr Carlos Peralta, President, and Dr R. Carlos Rodríguez, Vice President at Genesus Mexico. Due to the Mexican pig industry’s positive future perspectives, as a consequence of the grain price future (sorghum and corn) and the good slaughter price, growth has been reactivated.
November corn price will be 28.24¢ USD, Sorghum 25.95¢ USD and soybean meal 47 per cent at 54.66¢ USD.
On one hand, the Smithfield purchase by the Chinese Corporation Shuanghui, brought a breather to the Mexican Swine industry due the hope that there would be a reduction in exports from the USA to Mexico and the Chinese pork imports would increase. The analysts mention the Mexican slaughter price at least will maintain their actual value.
However, on the other hand the Mexican pork meat consumption continues increasing slowly and the pork requirements have been increasing proportionally.
Today you can find many pork related corporations that are looking for an opportunity market and they are considering expansion.
The Mexican exports pork industries are essentially those who are located in Sonora State (NW) and in the Yucatan State (SE) continuing their expansion basically to the Asian markets with value added cuts.
The Chinese market is requiring pork sub products, like haggis, stomach, lungs and hearts, due the high demand in their market. The only requirement is to receive these products Ractopamine free.
These kinds of products have a high demand in the Mexican market but not in the exports zone. At the moment when these companies can start with the export of sub products, they will bring to them a real value added to the range of export products.
Mexico has signed a trade agreement with the Chinese Government to export pork products and Tequila (Mexican traditional liquor) to them.
The pig industry consolidation has happened in other Mexican areas due to the integration process there are suffering with local or regional pig producers Associations who catch a lot of small, medium and large pig customers who help them to achieve scale economies so they are allowed to compete in the National and International market with their products.
The Mexican Authorities and National Pig Producers Association are pressuring actions to obtain importers quality and innocuousness recognition
The other important aspect in the Mexican pig industry is related with the outplacement of the existing old farms due to the unproductivity they have now in most of those outstanding health issues.
In the moment when they finish the farms outplacement they will be allowed to increase their competence, but at the end they will maintain the same number of sows than they had previous to the outplacement, but their final economical results will be much better.
|Genesus Global Market Report|
Prices for the week of October 28, 2013
(Liveweight a lb)
|USA (Iowa-Minnesota)||79.94 USD/lb carcass||59.16¢|
|Canada (Ontario)||174.05 CAD/kg carcass||60.62¢|
|Mexico (DF)||23.7 MXN/kg liveweight||82.06¢|
|Brazil (South Region)||3.79 BRL/kg liveweight||75.58¢|
|Russia||77 RUB/kg liveweight||$1.08|
|China||15.28 RMB/kg liveweight||$1.14|
|Spain||1.335 EUR/kg liveweight||82.01¢|
|Viet Nam||43,000 VND/kg liveweight||92.53¢|
|South Korea||3,462 KRW/kg liveweight||$1.48|
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