Pig and grain prices rise in Mexico

The Mexican pork market is gradually recovering from low prices at the beginning of the year. According to the latest market report from GENESUS, it has managed to raise prices by about $0.33 per kilogram of live weight to $1.76 per kilogram over the past month and a half. However, the outlook for the sector is much more difficult, as grain prices have risen in price by 50%, which has significantly affected the cost of pig production in the country.

The situation would become more dramatic if the Mexican peso was devalued, which is not surprising, especially in times of high volatility such as the current one.

The recent surge in pork prices is thought to be due more to seasonality than to any other effect. It is normal that at the end of Holy Week and the Easter holidays, red MEAT consumption returns to normal. However, what happened last year was very atypical due to the covid-19 pandemic, commented Fernando Ortiz, Ibero-America Business Development Manager at Genesus Genetics Inc.

Other external factors are also believed to have contributed to the rebound in live pig prices, mainly increased exports to CHINA , indicating higher demand. As well as an increase in the incidence of pigs in the United States. The herd expansion predicted by analysts back in 2019 is still expected, and this may lead to some market stabilization.