Genesus Global Market Report
Mexico
September 2024
Fernando Ortiz-H. Ibero-American Business Development
The national average price index remains at $39.34 Mexican pesos/kg (US$0.89/lb), indicating that during the last six months of 2024, there has been steadiness in the liveweight price in the Mexican pork market.
It is important to highlight that important producing areas such as estate of Jalisco and estate of Sonora are below this average price, Jalisco ($34.77 Mexican pesos/kg [US$0.79/lb]), around the break-even point, Sonora ($31.00 Mexican pesos/kg [US$0.70/lb]) below the break-even point. This national average is dramatically “altered” by the state of Yucatan with a price of $54 Mexican pesos/kg (USD$1.30/lb), and by the state of Veracruz with $46 Mexican pesos/kg. (US$1.05/lb).
Exports
It seems that selling pork outside the Mexican borders is not taking off, and on the contrary, the pork export quota has been reduced compared to previous years.
For example, Mexican pork exports, in mid-June, had exceeded 100,000 tons, but were almost 20% lower than in 2021, according to data from the Agricultural Markets Consulting Group (GCMA), which means a year-on-year decrease of 16.9%. Likewise, the value contracted 10.3%; this, even though the price per unit increased 7.8%, to $3,987 US dollars.
The same reaction has occurred with exports to China, which have continued to decline, being 74.3% lower than in 2021.
It is also important to mention that during the first five months of the year, Mexico exported 20,850 tons of pork to the United States, achieving a 58% increase in shipments compared to the same period last year, that is, a variation of 7,669 tons.
Despite this growth in sales, Mexico still holds third place as the main supplier, with a 9% representation in its export market to the USA, compared to Canada’s 67% and a volume of 162,155 tons.
Imports
On the other hand, pork imports, according to “Banxico” has doubled in five years.
Pork imports totalled $1,188 million dollars just on the first five months of this year, compared with same period on previous years.
Pork from Brazil
There is widespread discontent among Mexican pork producers over the import of pork from Brazil.
According to their associations, this import of pork from the South American country opens a new wound to domestic production, which must compete with a country with lower production costs and, according to them, with a sanitary inspection of pork that is not very rigorous.
Sources
Agricultural Markets Consulting Group (GCMA)
Porcicultura.com
Reforma.com
