Fernando Ortiz, Genesus Ibero-American Business Development Manager
Mexican Protein Facts
- First semester of 2021 vs same period 2022, prices in the country for meat increased 17.7%.
- pork 7.2%,
- chicken 13.3%,
- egg 4.4%
- condensed milk 3.5%.
- Mexico’s, meat import
- has decreased in beef by 15.6% volume while the price increased by 9.7%,
- Pork increased in volume by 1.4% and price decreased by 11.8%
- Chicken decreased in volume by -5.3% while the price increased by 22.4%.
- Mexico’s meat export
- has increased in Beef by 11.5%, also increased 6.3% in volume,
- in Pork decreased in volume by 23.4% and price it increased by 10.8%.
- The livestock sector has suffered increases in the costs of its raw materials; however, we observe that throughout the chain the impact on the consumer is less.
Mexican Pork Market Report
Last week Mexico’s pig price was 44.93 pesos per kilo ($1.01 US/lb) liveweight, which means that the price continues to remain well above what was registered in previous years, 21.74% higher compared to 2021 and 68.28% higher compared to same week 2020.
After more than 4 weeks of relative calm in the carcass national price, a slight downward movement of 0.79% was recorded last week, despite this the current carcass price in Mexico is 59.71 pesos per kilo ($1.35 US/lb), and a significant annual increase of 21.03%.
If we compare the prices of the US market with the prices of the Mexican market, we see that the average pig price in Mexico is 29.55% above the price in the US. Now in the case of the carcass price, the difference is 41.3% above the price paid in Mexico compared to the USA’s current price.
Note – According to some pig producers with whom we have discussed the market, currently the price of the pig, reported by La Unión de Jalisco, is 49 Mexican pesos ($1.10 US/lb) liveweight, while the cost of production is approximately 35 Mexican pesos (79¢ US/lb). Not an insignificant margin, close to $80 US per 265 lb hog in the Jalisco region, one of the states with the largest number of sows in the country.
Jalisco’s pig industry produces more than 380,000 tons of pork per year. The states of Jalisco, Puebla, Sonora, Yucatán, and Veracruz produce 86% of the total pork produced in the country, this figure is equivalent to 1.4 million tons per year.
Livestock feed costs have increased, with corn representing a 32.2% increase in one year, soybean meal at 19%, and DDG’s 40%.
Last week, the price of sorghum remained the same compared to the previous week, while corn and soybean meal contracted by 1% and 5%, respectively. These declines offer momentary relief to the concerns of producers, who continue to work to maintain the profitability of the business.
Agricultural Markets Consulting Group GCMA
Agro Información ARIDA Asesores
This post was written by Genesus