Mexico’s pork production forecast to break record in 2022

Despite environmental, economic and policy challenges, the pork sector in Mexico continues to grow and benefit from high domestic demand, according to a recent report by the US Department of Agriculture (USDA).

Beeld: ©Yaw Ansu Kyeremeh

A recent report by the USDA (see the link below this article) is optimistic about the development of Mexico’s pork sector. Below are some interesting highlights from the report.

Growing pig herds and live swine imports

Mexico’s pig herd is forecast to grow by 3% over the next five years, due to improved swine genetics, breeding, animal health protocols, and strong domestic and export demand for pork; In 2022, it is expected to reach 21,5 million head. The country will continue to rely on importing around 30,000 head from the US and Canada. Swine producers primarily import breeding sows to maintain and improve herd genetics and to maintain disease-free recognition. After suffering price volatility during 2020 and 2021 average hog prices are set to maintain an average of $1,67 per kilogram in  – a rise of 11,4 – as local demand keeps rising, the economy recovering and feed prices remain high.

Increasing pork production

Mexico’s pork production is also expected to grow by 3%  and should reach 1,54 million metric tonnes in 2022. The main states where swine herds are concentrated in Mexico are Sonora in the north, Jalisco in the center and Puebla and Veracruz in the southeast of the country.

Improved biosafety and disease management

Over the years, and bolstered by the  North American Free Trade Agreements, the Mexican pork sector has received significant foreign investment and has adopted international animal health and biosafety protocols. This has led to improved herd quality, genetics, disease management and hog productivity. Mexico is also effectively managing common diseases such as Classical Swine Fever.

The main players

Eight Mexican companies representing 40% of the market have helped to consolidate the sector with high standards and efficiency. These are:

  • Granjas Carroll
  • Grupo Juo
  • Grupo Beluga
  • Grupo Yoreme
  • Ojai Alimentos
  • Kowi
  • Ricer
  • Industrias Bachoco

Increasing domestic pork consumption

The strong domestic demand for pork and high prices are driving these producers to expand production capacity.  Despite a higher retail price than chicken and beef, pork has now become the second most popular animal protein in Mexico. Consumption is expected to expand to 2,13 million metric tonnes in 2022, up 1,9% from 2021. Pork meat imports, however, are expected to decline slightly (0,5%), as domestic production expansion outpaces growth in demand.

Roadshow for Dutch suppliers

Later this year, the Embassy is planning or organize a pig & poultry roadshow for Dutch companies interested in exploring the Mexican market and meeting Mexican pork producers. Interested companies are requested to contact the Embassy for more information.