Fernando Ortiz-H., Genesus Ibero-America Business Development Manager
Looking at the current market
Mexico has increased its weekly purchases of pork from the United States by 14%, with an average of more than 15,370 tons per week arriving in the country from its northern neighbor. Accumulating an amount close to 615,000 tons of imported American pork so far this year (Oct. 3, 2023). Effect that always leaves a heavy burden on local producers, who must compete with a low-priced imported product.
Good news is that Mexicans celebrate their national pride during their independence celebrations in September by consuming more pork. Thanks to those national festivities there was an increase in the national weighted average price of live pork of 1.30% weekly, reaching 35.82 Mexican pesos per kilo liveweight ($0.91/lb).
Now, if we compare this current price with the annual average of 40.93 Mexican pesos ($1.03/lb), well, we are facing a decrease in price, but it is slight lower than the average price in 2022, which was 37.11 Mexican pesos ($0.94/lb).
One of the most representative states of Mexican pork production is without a doubt Jalisco, not only because of its weight within national production, but also because of the diversity of producers it has. Jalisco is ranked in first place in Mexico, with 5,504,360 tons of pork, which represents 22.8% of the total national production.
The following is a graph of the evolution of the price of liveweight pigs in this State of Jalisco during the last five years (value is in Mexican pesos/kg).
At this time in markets such as Jalisco there is a supply of very heavy animals, mostly coming from large producers, while medium or small pig producers have a fluid demand for their production at the weights established in the market (below of 130 kg liveweight).
Feed
It is also important to highlight that the prices of animal feed raw materials have been in free fall during the last nine months of 2023. The following has been the reduction in prices for some ingredients on an annual basis:
Corn -32.27%
Soybean cake -23.09%
Sorghum -38.10%
Export
Mexican pork exports fell almost 14%.
Mexico exported a little more than 141 tons, so far this year, indicating a reduction of 13.8%.
The export trade of Mexican pork to China is practically paralyzed, compared to 2022; Export revenues also fell 15.5%, only 557.7 million dollars, with an average price of $3,931 per ton., this is a shrinkage of 1.9%.
*With information from the Market Consulting Group (GCMA) and other sources.
Categorised in: Featured News, Global Markets
This post was written by Genesus