How Long Before Good Profits Come from Pigs in Mexico?30 June 2014
MEXICO - During the second half of 2014 pig slaughter prices in Mexico will still at the same level as the first half of the year, according to Carlos A. Peralta the President and R. Carlos Rodriguez, Vice-president of Genesus Mexico.
Crops are expected to be good to excellent, so the grain prices will also be at the same level as the first half.
There will be some gaps in the availability of hogs because of the PEDv outbreaks suffered during the first half of the year.
The number of PEDv outbreaks have diminished dramatically probably because of the beginning of the summer season.
The XXIII International Pig Veterinary Society (IPVS) Congress and the XVIX Mexican Pig Veterinary Society (AMVEC) Congress were held in June in Cancun, Mexico.
The Undersecretary of Livestock of the Secretary of Agriculture said that the pig industry will grow by 3.38 per cent during 2014, which means 30,000 sows.
Genesus expects the growth will be in more than 60,000 sows (7.5 per cent), because in the state of Yucatán alone they are building facilities for 13,500 sows.
During the last six years, the Mexican pig production grew by four per cent despite the losses suffered in the industry and the imports grew by eight per cent per year.
One of the main problems Mexico has to export pork meat to the US is related with the non-recognition by the USDA that the country is free from Classical Swine Fever. This recognition was obtained in 2012.
The Canadian government has recognised Mexico as free from Classical Swine Fever in just nine of the 32 Mexican States.
Mexico´s principal pork meat exports are to Japan (77 per cent), Korea (10 per cent) and the US (seven per cent) and six per cent to 10 other Countries around the World.
Exports to China are on hold because of all the Chinese requirements for imports but the country is in the process of obtaining the Federal Inspection Type (TIF) Certified for many slaughter and packing plants because of Smithfield's presence in Mexico. Other companies must be prepared to start exporting to China as soon as possible.
The Mexican NPPC president announced the pork meat per-capita consumption during 2013 was 16.6kg (37 pounds), compared with few years ago when we had 15.5kg (34 pounds). Their increased expectations for the pork meat consumption are down to different factors such as, better product quality, better sanitary controls and a better economic climate.
Every 100g in pork meat per-capita consumption represents 13,000MT of extra production in Mexico.
According with the National Institute of Statistics (INEGI), 49 per cent of the pork meat consumption is consumed by those on a low level income, 30 per cent by those on a medium level income and just 20 per cent by those with a medium-high income.
Statistics for meat consumption in Mexico according to different surveys show the meat preferences as: poultry 45 per cent, beef 36 per cent, pork nine per cent and all others 10 per cent. Around 80 per cent of the population likes pig meat, five per cent do not like it, 13 per cent think that is dangerous and two per cent are vegetarians. Purchasing preferences show that 26 per cent show in supermarkets, 39 per cent in markets, 23 per cent in butcheries and 12 per cent are indifferent where they buy their meat.