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Genesus Global Market Report: Mexico - January 2020

The United States Department of Agriculture Foreign Agricultural Service (USDA-FAS) projects production will increase every year in Mexico.

6 January 2020, at 4:35pm

Exports to purchasers in the United States (US) and East Asia have also forecast an increase. These signs point to a bright future for the Mexican pork industry.

This is propelled by a steady market, strong domestic demand, stable feed prices, improved genetics, biosecurity measures, and positive expectations for exports due to recent recognition by the United States as Mexico being free of Classical Swine Fever.

Mexico’s swine industry has grown rapidly in recent years, consolidating, and expanding production. Larger commercial producers are adding everything from feed processing facilities to farrowing facilities all the way down the chain to meat processing facilities and cold storage. These larger commercial producers use production systems like those in the United States. They also have switched to breeds that improve meat quality (Duroc) and enhanced feed to improve specific characteristics in meat such as marbling and better tasting.

The world food economy is being increasingly driven by the shift of diets and food consumption patterns towards livestock products. Some use the term «food revolution» to refer to these in the developing countries, where almost all world population increases take place, consumption of meat has been growing at 5-6 percent p.a. in the last few decades.

Also, it benefits from the important crop-livestock synergies prevailing in mixed farming systems. Mexico’s domestic consumption of animal protein, and specifically pork, is rapidly surging as consumers look for a tastier and cheaper substitute to beef.

2019 was a powerful year for the swine sector.

According to figures from the Agrifood and Fisheries Information Service (SIAP), during the first 11 months of 2019, the pig industry registered the highest growth among all livestock and poultry production. 6.5 percent higher compared with the production of the same period last year, reaching 1.44 million tons.

In the specific case of November, 142,875 tons of pork were produced, which represented an increase of 7.6 percent over what was recorded in the same month of 2018. But it wasn’t only the record amount of pork produced. The market was also especially generous for producers across the country with good prices, about 80 cents/lb liveweight average.

On the other hand, Genesus wants to extend a very special greeting to the new president of the Mexican Pork Producers Confederation (CPM - Confederación de Porcicultores Mexicanos), Mrs. Marilú Ábrego, recognized swine producer for many years. She comes from a family that has contributed largely in a positive way to the production of animal protein in Mexico. Mrs. Ábrego has shown willingness to work with the Country Pork Producers Organization (Oporpa), to discuss, in the medium term, the creation of a single entity that groups all Mexican swine producers.