Rabobank’s Food & Agribusiness Research department released on September 23 a report focusing on the competitive promise and international growth of Mexico’s meat industry. The report states that the prospects for the Mexican meat industry are positive. The pork sector, in particular, is expected to do well, provided the industry develops a business model geared toward continued consolidation, continued imports and selective growth in export markets.
The key points of the recent report on the mexican meat industry are:
- Mexican meat production is seeing positive growth, but it still cannot keep pace with demand, making Mexico a net importer of meats.
- Rabobank projects that meat imports will rise 80%, reaching 2.5 million tons by 2020.
- The Mexican grain deficit and high cost of imported animal feed could work to limit large-scale expansion of meat production. Mexico’s actual and potential corn production capability is a key factor in determining future competitiveness.
- Mexican meat companies that do not adapt to the changing business model will be hard-pressed to grow and survive.
- Foreign companies who ignore the possibilities in the Mexican meat market may find themselves left out of an attractive business proposition.