Mexicans eat tacos, lots of tacos, which are usually filled with stews made with meat. A lot of pork is used, but so is chicken meat.
With the COVID-19 pandemic, they stopped selling a lot of tacos, and I am not just referring to formal restaurants, but also to the thousands and thousands of street stalls, which sell food at very affordable prices for a population that earns very little money. Take note that two years ago, the OECD reported that Mexico is the lowest-income country in that select group.
The other day, at a press conference of Mexico's National Feed Manufacturers Council (Conafab), the recovery of the livestock industry in the country was discussed. It is recovering, although not with the same intensity as before. It is estimated that recovery has been around 90% and that by the end of 2020 there may be a growth of 2.9%. However, exchange-rate volatility has put a lot of pressure, as well as problems with the uncertainty of the pandemic and politics, or the reimbursement of VAT from the local tax authorities.
This optimism − perhaps a little shy − was also shown by the year-to-date results of companies such as Pilgrim’s Pride de Mexico and Bachoco. The first reported sales increases in general, but in Mexico in particular. With a very difficult first half of 2020, the third quarter showed excellent results and resulted in “one of the strongest quarters in the history of the company in Mexico”.
Bachoco also reported an increase in sales in the third quarter and year-to-date, as well as in profits. Another interesting aspect was the consolidation of the company Sonora Agropecuaria, which goes along with what was said at last week's press conference about the good times that the swine industry is enjoying, because of exports.
Both companies mentioned the normalization of economic activities in the country, as well as the better balance of market supply and demand. Even the fact that there is a stronger Mexican peso and good operational performance. All this has led to the strengthening of operations in Mexico.
So, despite all of this, perhaps there are good times. Thus, Mexicans will continue to eat more tacos -- meat tacos, of course.
What do you think?
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