Genesus Global Market Report Mexico February 2023

Fernando Ortiz, Genesus Ibero-American Business Development Manager

Mexican liveweight national average price remains down 1.35% weekly, while the price of carcass meat does not present weekly changes, with a price of $56.24 per kilo ($1.38/lb). Current national average price is $40.34 ($0.99/lb), slightly below the annual price average.

Last Year Prices (Feb 2022 – Feb 2023)

Minimum $28.40 ($0.70/lb)

Maximum $51.70 ($1.27/lb)

Last year average $41.75 ($1.03/lb)

While the average price of pork at the farm in Mexico is 70.81% above the price paid in the US, the difference for carcass meat is 77.92%, compared to its neighbor to the north. With such a marked difference in prices between the United States and Mexico, this country will continue to be the main export market for American pork.

Export Market

According to the Grupo Consultor de Mercados Agrícolas (GCMA), between January and May Mexican pork exports amounted to 100,845 tons, a volume that represented a year-on-year decrease of 16.9%, its value contracted 10.3% to close at $402.1 million; this even though the price per unit rose 7.8%, to $3,987.

During the first five months of the year, exports to China continued their decline, being 74.3% lower than in 2021, which moved it to third place among the main destinations for Mexican pork with 11,357 ton. On the other hand, the US, Japan and Canada have increased their imports of Mexican pork.

Genetically modified corn and glyphosate

There are two issues in hot debate in the Mexican animal and food industry currently, one is the use of glyphosate in crops and the other is the prohibition of transgenic corn for consumption.

The National Council of Science and Technology (CONACYT) is the institution that has presented viable alternatives, of proven effectiveness and with the potential to dispense with glyphosate, consisting of bio-herbicides and agroecological practices, applicable to any scale of production and for various crops.

It seeks to differentiate human consumption of corn from animal consumption and industrial use, specifying that permits will be granted for the use of this genetically modified grain for animal feed or industrial use.

CONACYT addresses the issue of the implementation of alternatives for the gradual substitution in the country of genetically modified corn for animal feed, in addition to its industrial use for human food.

It points out that, in the case of genetically modified corn destined for industrial use, actions are contemplated to carry out the gradual substitution of that whose industrialization generates products destined for human consumption.

It indicates that genetically modified corn may be used for animal feed and industrial use, but that, once the supply of glyphosate-free corn is sufficient, said use should not generate products intended for human consumption; It can only continue to be used in the manufacture of other products, such as cosmetics, textiles, footwear, paper, construction, etc.

Sources: With information from the Market Consulting Group and other sources.