Mexican meat prices expected to increase
While the country’s economy is improving gradually, food consumption remains vulnerable to income and price effects, it said, with disease also expected to threaten both hog and poultry production this year.
According to its Mexico Agribusiness Outlook report, the animal protein sector is likely to show positive margins this year, as the price of meat is expected to rise, while feed costs look to remain constrained.
A severe reduction in hog supplies is expected, due to the outbreak of porcine epidemic diarrhoea virus (PEDv) in North America, while the poultry market is predicted to expand despite the potential threat from the return of avian influenza.
Last month the World Organisation for Animal Health announced that a low pathogenic variant of avian influenza – H7N3 – had been discovered at a farm in Pesqueria, Nuevo Leon.
"Beef production remains constrained, due to continued contraction of the herd," the report said.
Pablo Sherwell, an analyst at Rabobank, said: "We identify five factors that will drive Mexico’s growth this year: resumption of exports to the US; increased competitiveness of the Mexican manufacturing sector; higher government expenditure; timely public expenditure; and approval of important legislation, allowing for structural reform in key sectors."
In October last year GlobalMeatNews reported that Mexico’s poultry sector had announced plans to invest more than MXN3m (US$232,913) in its industry during 2014, in a bid to modernise the country’s production and processing infrastructure.