When we think about the main animal protein producers – the top 10 – we tend to think of China, Brazil or the U.S. Also of the European Union, kind of tricky, though, because they include 27 countries. Anyway, the point is that in the other six countries, there are two big Latin American nations – Mexico and Argentina.
I am going to focus on Mexico, the 14th largest global economy, because during the AVEM International Congress in Pachuca, Mexico this week, I attended a very nice, clever and straight-forward presentation given by Martín Toscano, president and general manager of Evonik Mexico.
Toscano gave a bunch of figures, such as the fact that 83% of meat production in the world is represented by 10 countries, where Mexico ranks sixth. Mexico is also 6th in world chicken production. The top 10 produce 78% of world broilers, and Mexico accounts for 3.82%. It is also 4th in eggs if I am not wrong. But Mexico also excels in chicken imports – it is the 2nd largest importer after Japan. Therefore, in chicken consumption, Mexico ranks 5th, accounting for 4.87% of the 97,306 metric tons produced worldwide.
Nonetheless, I would like to highlight the excellent perspectives Toscano presented for Mexico:
· The meat sector increased 3.4% in 2021, compared to 1.8% of the food industry and 2.9% of the ag sector.
· Meat plant capacity of more than 4,000 establishments recovered 2 points, standing now at 90%, so new investments are needed.
· Meat per capita consumption is almost at 74 kg (estimated for 2022), while population growth is only 1%.
· Although poultry is basically for local consumption, beef and pork sectors are exporting.
· There are conditions that will boost consumption such as better wages, nearshoring, relocation of supply chains, the USMCA, China+1 strategy as well as tourism.
As per Toscano’s analysis, Mexico is an attractive market with sustainable growth perspectives for all manufacturing industries. Investments in key industries, such as those made by Tesla and many other major conglomerates, will boost demand for more chicken and eggs, moving the country up in the world ranking.
What do you think?
