Genesus Global Market Report
Mexico, April 2021
Ibero-America Business Development Manager
Genesus Genetics Inc
The Mexican pork market has been gradually recovering from the low prices at the beginning of the year. In the last month and a half, it has managed to push up the prices by around 15¢ US per pound liveweight (from 65¢/ lb to 80¢/ lb) in the last two months.
Unfortunately, not everything has been good news, since the prices of grains, most of which are imported, have risen 50% in cost, significantly impacting pig production costs. If the exchange rate between the Mexican peso vs. US dollar remains stable as up to now, around 20 Mexican pesos per dollar, it is still profitable to produce with the high costs of food raw materials.
The situation would become more dramatic if the Mexican peso suffered a devaluation, which is not strange, especially in times of high volatility such as the current ones.
The recent spike in pork prices is believed to be due more to seasonality than any other effect. It is normal that at the end of the Holy Week and Easter festivities the consumption of red meat returns to its normal course. However, what happened in the last year has been very atypical due to the Covid-19 pandemic.
Pork consumption has been hit hard as a large portion of the population has lost their income. The activity of the tourist and restaurant industries in the country has been depressed by the constant restrictions ordered by states and federal governments to mitigate the spread of the disease among the population.