Genesus Global Market Report: Mexico (Apr 19, 2017)

GLOBAL MARKET REPORT

MEXICAN PORK MARKET

Fernando Ortiz

fortiz@genesus.com

Mexico increases pork exports

Mexican pork exports grew 9.5 percent in 2016, compared to the previous year.

Last year, pork sales abroad totaled more than 432 thousand tons, unlike the 395 thousand that were exported in 2015, the main destinations are Asia, Japan, South Korea and China.

The Japanese market is one of the most important for this meat product, four out of every five tonnes exported go to that country.

In addition, the renewed political and trade relationship between Mexico and China will allow pork exports, among other agrifood products, to increase in the short and medium term, in light of the Asian giant’s high demand.

Data from the Agri-Food and Fisheries Information Service (SIAP) indicate that pork production in the country in 2016 grew by 49 thousand tons (3.75 percent growth compared to 2015, with 1,364,200 tonnes).

The same agency – referred to SAGARPA – reported that the six main pork producing states are Jalisco, with 265,217 tonnes; Sonora, 234,639; Puebla, 166,947; Yucatan, 135,442; Veracruz, 122,329, and Guanajuato, 110,489 tons.

Data from the SIAP show that the national inventory is more than 1.7 million head of pigs and that per capita consumption is 16.3 kilograms.

Mexican Hog Market

Following is the pork price trend in Mexico since the first week of this year

Date	MXN/kg	US/lb
12-Apr	24.44	0.59
05-Apr	24.35	0.59
29-Mar	24.65	0.59
22-Mar	25.88	0.62
15-Mar	26.28	0.61
08-Mar	26.84	0.62
01-Mar	26.55	0.61
22-Feb	27.32	0.62
15-Feb	27.88	0.62
08-Feb	28.56	0.63
01-Feb	29.84	0.65
26-Jan	30.52	0.66
18-Jan	31.56	0.65
11-Jan	32.32	0.67
04-Jan	31.84	0.67

Pork prices have been much steadier over the last three weeks, considering that seasonality has been a critical factor (40 days Lent and Easter) that has negatively affected red meat consumption. We think the price will recover as the warm season looms, and more pork leave Mexico to international destinations.

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