Fernando Ortiz, Ibero-American Business Development, Genesus Inc.
The prices of feed ingredients have risen in Mexico, as in the rest of the world, due to external issues, among which the conflict between Russia and Ukraine stands out. The United States is also behind in its planting of corn and soybeans. From 2020 to date, the price of corn futures in the world has increased 125%, that of wheat 117%, soybeans 94% and soybean paste, 57%, according to the Market Consultant Group.
Pork exports fell by 22.5%, however, given a 9.4% rise in price, the value fell by 15.2%. Exports to China have dropped by up to 75.5%, reducing their share to 12.2% of total exports. The quarantine strategies implemented in Shanghai have resulted in logistical difficulties for companies that export meat to China. Rabobank forecasts a drop in total Chinese meat imports of up to 30%.
Imports reach a record of 366,000 tons, driven by a 12% drop in price. pork had an increase in volume of 24.2%, being the protein of animal origin that was most purchased from abroad.
The industry is reporting around 10% production losses due to DEP and PRRS
Some producers are breaking even with a lot of them losing money. Although the price has gained ground in recent weeks, the cost of production, due to the strong rise in feed raw materials, has not allowed producers to have profit margins in the business.
|Mexico Hog Price by State|
*With information from the Market Consulting Group (GCMA) and other sources.
This post was written by Genesus