Genesus Global Market Report Mexico – January 2019

By
Jim Eadie
-

Genesus Global Market Report 

Mexico – January 2019 

Fernando Ortiz-Hermida – Ibero-America Business Development Manager
fortiz@genesus.com

The United States Department of Agriculture Foreign Agricultural Service (USDA-FAS) projects production will increase every year in Mexico. Exports to purchasers in the United States (US) and East Asia have also forecast an increase. These signs point to a bright future for the Mexican pork industry.

This is propelled by a steady market, strong domestic demand, stable feed prices, improved genetics, biosecurity measures, and positive expectations for exports due to recent recognition by the United States as Mexico being free of Classical Swine Fever.

Mexico’s swine industry has grown rapidly in recent years, consolidating, and expanding production. Larger commercial producers are adding everything from feed processing facilities to farrowing facilities all the way down the chain to meat processing facilities and cold storage. These larger commercial producers use production systems like those in the United States. They also have switched to breeds that improve meat quality (Duroc) and enhanced feed to improve specific characteristics in meat such as marbling and better tasting.

The world food economy is being increasingly driven by the shift of diets and food consumption patterns towards livestock products. Some use the term «food revolution» to refer to these in the developing countries, where almost all world population increases take place, consumption of meat has been growing at 5-6 percent p.a. in the last few decades.

Also, it benefits from the important crop-livestock synergies prevailing in mixed farming systems. Mexico’s domestic consumption of animal protein, and specifically pork, is rapidly surging as consumers look for a tastier and cheaper substitute to beef.

2019 was a powerful year for the swine sector.

According to figures from the Agrifood and Fisheries Information Service (SIAP), during the first 11 months of 2019, the pig industry registered the highest growth among all livestock and poultry production. 6.5% higher compared with the production of the same period last year, reaching 1.44 million tons.

In the specific case of November, 142,875 tons of pork were produced, which represented an increase of 7.6% over what was recorded in the same month of 2018. But it wasn’t only the record amount of pork produced. The market was also especially generous for producers across the country with good prices, about 80 cents/lb liveweight average.

On the other hand, Genesus wants to extend a very special greeting to the new president of the Mexican Pork Producers Confederation (CPM – Confederación de Porcicultores Mexicanos), Mrs. Marilú Ábrego, recognized swine producer for many years. She comes from a family that has contributed largely in a positive way to the production of animal protein in Mexico. Mrs. Ábrego has shown willingness to work with the Country Pork Producers Organization (Oporpa), to discuss, in the medium term, the creation of a single entity that groups all Mexican swine producers.

New Genesus Nucleus/Multiplier
in Ukraine

On the 21st of December 2019, the first official supply contract of Genesus breeding stock to Ukraine was finalized with a delivery of 749 York gilts, 7 York boars and 6 Landrace boars to the isolation farm of “Agrarna Kompaniya 2004” located in the Chervoniy Kut village of Khmelnytskyi region.

Agrarna Kompaniya 2004

Pigs all came from Genesus Genetic Nucleus in the UK, Bridge House Farm, located in Northamptonshire in the UK. After 21 day of quarantine in the UK, pigs were moved to the farm located in Bohdanivka village of Khmelnitskiy region where the first Ukrainian official Genesus multiplication unit will be opened.

The unit will produce pure Genesus York gilts and boars, as well as F1 gilts. At least 50% of the gilts will be used by “Agrarna Kompaniya 2004” as they plan an expansion of their own swine business (currently the customer has 4000 Danish sows that will be replaced by Genesus breeding stock).

The customer has different agricultural businesses (50,000 hectares* of farming land under long term lease, orchards with fruit storages and processing facilities, feed mill, swine units, dairy cattle farms, etc.) as well as a construction business.

*One hectare is approximately equal to 2.5 acres.

Until 4 years ago Genesus had no real presence in Europe or the countries of the ex-soviet Union. This new nucleus in Ukraine is a very exciting continuation of the rapid growth we are seeing. So far, Genesus has established nucleus herds in UK, Ireland, Germany, and Spain. In 2019 we exported pigs to Poland, Bulgaria, Africa, Belarus, and Armenia. These are all new markets for Genesus.

The European genetics business has been dominated by European genetic companies based in Denmark and Holland. The European market trend for many years weighted toward ultralean pork, which tends to be dry and tasteless. Breeders have focused on born alive per litter as a major genetic trait.

Canadian genetic company, Genesus, pays particular attention to producing tasty pork. Better taste and juiciness leads to consumers wanting to eat more pork more often. We believe taste and flavor are the ultimate enhancers of demand. Genesus’ breeding focus is a productive and robust sow that is easy to manage with a lower cost of production.

“Production cost in Canada is 25% to 30% lower than in Europe. The combination of easy to manage, lower cost and tasty meat has been the backbone of Genesus’ rapid growth in Europe”. 

Simon Grey, General Manager Russia, CIS and Europe.

For further information on the supply of Genesus breeding stock in Ukraine contact:

Yevgen Shatokhin

+380 (50) 444 2633 or

shatokhinyevgen@gmail.com 

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