August 15, 2020

Pork production in Mexico increasing along with demand

Mexico's swine production in marketing year 2021 is forecast to increase to 20.8 million head from 20.275 million in MY 2020, as demand for pork increases in the country and globally, the US Department of Agriculture said in a report.

Mexico's pork production grew 6.5 percent in 2019, keeping a steady pace through the first quarter of 2020, according to the report, citing figures from Mexico's Agriculture Secretariat.

The steady increase comes as Mexico's swine producers continue to vertically integrate production chains, invest in technology and implement biosafety measures to reduce swine mortality in farms, the report, released by the USDA Foreign Agricultural Service (FAS), said.

The report noted that since 2019, demand for pork in Mexico has continued to grow, as more retail consumers switch from beef to pork as a cheaper animal protein amid adverse macroeconomic conditions. 

After contracting 0.01% year-on-year in 2019, Mexico's gross domestic product growth is estimated to contract 10% this year. "In 2020, this phenomenon will increase demand for pork and pork-based products, as household disposable income remains depressed", the report said.

Pork exporters, meanwhile, have found new market opportunities in China, and continue to comply with rigorous market requirements of Japan and South Korea, the report said.

Moreover, it sees 2021 with a better economic scenario over 2020 after pandemic emergency measures are lifted and economic activities resume.