The national average liveweight price in Mexico is MX$36.70/kg (US$0.98/lb).
JALISCO $35.20/kg (US$0.94/lb)
GUANAJUATO $35.75/kg (US$0.96/lb)
YUCATÁN $46.00/kg (UD$1.23/lb)
SONORA $29.83/kg (USD$0.79/lb)
Mexican Pork Industry Vision Ahead
The Mexican Pork Producers Organization (Opormex) has recently presented its Vision 2035, marking a significant step for the pork industry in Mexico. This strategic vision, designed to comprehensively advance the sector, has been highlighted by the executive president of Opormex, Jorge Iván Espinosa Vázquez, who highlighted eight key areas that address the most urgent needs of the sector:
1. **Corporate governance and management**: Implement management standards and practices to strengthen the internal structure and processes.
2. **Public policy and regulation**: Identify the strengths and opportunities in the regulation and public policy of the sector.
3. **Health and productivity**: Maintain high standards of health and productivity to meet the demand for pork.
4. **Positioning of pork**: Highlight the nutritional benefits, flavor and competitive price of pork.
5. **Sustainability and animal welfare**: Promote responsible practices to guarantee sustainability and animal welfare in pork production.
6. **Integration of producers in the value chain**: Promote the integration of producers in associations to take advantage of opportunities in the value chain.
7. **Participation of members**: Promote linked and coordinated participation of members in the challenges of an increasingly competitive sector.
8. **Sector intelligence**: Improve competitiveness through the analysis of timely information about the sector.
These guiding axes represent a comprehensive approach to address the challenges and opportunities of the pork sector in Mexico, ensuring a sustainable and prosperous future for the industry.
In 2024, the Mexican pork industry presents a dynamic outlook, with reductions in production in some regions and notable growth in others. Additionally, changes in international trade are reshaping the landscape of global pork exports and imports.
According to the United States Department of Agriculture (USDA), it is estimated that Mexico will need to import around 1.35 million tons of pork, which would represent stability with respect to 2023. In addition, pork consumption in Mexico It is expected to reach 2.7 million tons, an increase of 1% compared to the previous year.
Last Week Summary
- Mexico reduced its purchases of fresh pork from the US by 9% with 12.9 million MT, representing an accumulated annual total of 226 million MT, this is 9.4% less compared to a year ago.
- The slaughter rate remains reduced by an average of 0.6 – 0.8% per week, a clear indication of the number of sows that have been eliminated, causing a slight increase in the price of liveweight pigs.
Sonora, crisis in its pork industry
Liveweight hogs average price in Mexico has been around $36 – $37 pesos per kilogram (0.96 – 0.99 US$/lb). However, in Sonora, this index has been notably lower, below $30/kg (US$0.80/lb), being the lowest price nationwide. States like Querétaro and Yucatán have reached $46 per kilo (US$1.23/lb).
The situation regarding the health status of pig herds in Sonora is another critical point that hits the pig sector hard, especially with PRRS.
California Proposition 12 – As if all of the above were not enough, an exogenous effect adds to the crisis of the pork industry in Sonora. California has been a natural market for the sale of Sonoran pork. California Proposition 12, however, has impacted Sonoran pork producers, who have indicated that the implementation of California Proposition 12 in the United States has resulted in a greater limitation of pork exports to that country, due to the restrictions it imposes.
This measure, which went into effect earlier this year, prohibits the marketing of pork products in California if they come from sows that have been raised in individual spaces of less than 24 square feet per head, even if these animals are imported from other regions.
Since last year, Mexican exports have experienced a decline, registering a drop of 3.6% in the US (6,164 tons) at the end of the first two months of 2024. On the other hand, imports from that territory have increased by almost 9 % (237,662 tons). This joint situation is impacting pig values.
Sources
GCMA Agricultural Market Consulting Group
Porcicultura.com
Tribuna newspaper
