Fernando Ortiz-H IberoAmerican Business Development Manager
After the summer seasonal peak of prices above 50 Mexican pesos/kg ($1.13 – 1.15 USD/lb), the national average price for liveweight hogs in Mexico has returned to the mid-40s, with a national average price for this week of $44.66 Mexican pesos/kg (US$1.00/lb).
As always, the higher the price of pork in Mexico, the higher the exports of American pork to that country.
American pork traveling to Mexico and Latin America
From January to August, shipments of pork from the United States to Mexico reached 758,712 tons, which represents an increase of 8% compared to the same period last year, as reported by the United States Meat Export Federation USMEF.
The value of such trade also showed notable growth, rising 14% to $1.68 billion, reaffirming Mexico’s importance as the main market for U.S. pork products.
In August alone, Mexico imported 94,935 tons, reflecting a 4% increase compared to the previous year, while spending during that same month climbed 9%, totaling $230.6 USD.
Good results in South America
USMEF President Dan Halstrom noted that in addition to the good results obtained in Mexico, the demand for pork in the Western Hemisphere was exceptional in the eighth month, with an increase in shipments to the American territory.
In this sense, the value of trade with South America reached a record of $45.3 million dollars in August, an increase of 97% compared to the previous year. Colombia stood out, achieving an import equivalent to $39.6 million dollars, more than double that of 2023.
Central America
Positive results for American pork exports to Central America with shipments 31% higher year-on-year compared to the previous year, reaching 11,417 tons, with a value of $36 million dollars. 38% higher than the previous year.
Brazil
Record in Brazilian pork production expected in 2025
Record pork production will allow an increase in both the domestic and foreign markets when comparing 2025 with 2024.
Production of both pork and chicken could reach a new record in 2025. Influenced by strong international demand and a good pace in the domestic market, combined with a controlled cost situation, because of lower grain price levels. For pork, production of around 5.45 million tons is expected. Record pork production will allow for an increase in both the domestic and foreign markets when comparing 2025 with 2024. For the domestic market, the projected increase is 1.1%, with an estimated supply of 4.2 million tons. Regarding exports, according to data from the Brazilian Animal Protein Association (ABPA), Brazilian pork exports registered an increase of 7.7% between January and September 2024, reaching a total of 990,700 tons. If in 2020 China accounted for more than 50% of external pork sales, this share fell to less than 20% if the volume exported from January to August of this year is analyzed. However, this pork has moved towards the Latin American neighborhood, such as Chile, Mexico and Argentina, favoring the prospects for the end of 2024.
Sources
Porcicultura.com
