Mexico

Supply/Demand Basics

  • #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.

Country Overview

  • 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.

Policy Issues

  • 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.