- #1 importer of U.S. corn (white and yellow 15.7 MMT).
- #1 DDGS market with imports of 2.1 MMT.
- #1 importer of U.S. barley and barley malt with imports of 269 TMT.
- U.S. sorghum imports down significantly, from 568 to 67 TMT.
- Feed industry growth is the main demand driver for grains and co-products.
- Poultry, swine, dairy and beef continue to grow consistently.
- Population / growth: 125 million / 1.09%
- Urban % / growth: 80.2% / 1.6%
- GDP / growth: $2.4 trillion / 2.3%
- GDP per capita: $19,900
- Mexico is a free market economy, with recent reforms made to allow non- governmental investment in petroleum, gas, electricity and basic infrastructure.
- Mexico must continue to address income and distribution gaps and security issues.
- A weaker peso and low oil prices complicates the economic situation.
Trade and Market Share Issues
- Total U.S. market share is 94%.
- Mexico exported 800 TMT of white corn, mostly to Venezuela (85%), Italy (12%) the U.S. (1.5%) and El Salvador (1.2%).
- November 2018 – Mexico signed a protocol agreement with China to open the possibility for Mexican sorghum to reach that market.
- Significant untapped potential for DDGS (ruminant sector).
- Significant opportunity for ethanol exports if regulations can be put in place.
- The world’s 4th largest compound feed industry running at 85 percent capacity and expanding at 2.5% annually.
- Energy sector reform has opened opportunity for ethanol exports to Mexico.
- US – Mexico – Canada (USMCA) free trade agreement signed but not yet ratified.
- New government in Mexico took office in December 2018.