Supply/Demand Basics

  • #1 importer of U.S. corn (white and yellow 16.1 MMT).
  • #1 DDGS market with imports of 2 MMT.
  • #1 importer of U.S. barley and barley malt with imports of 227 TMT.
  • U.S. sorghum imports up significantly, from 208 to 489 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: 127.5 million / 1.1%
  • Urban % / growth: 80.2% / 0.6%
  • GDP / growth: $2.57 trillion / 1.3%
  • GDP per capita: $18,101
  • 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 complicate the economic situation.

Trade and Market Share Overview

  • Total U.S. market share is 94%.
  • Mexico exported 200 TMT of white corn, mostly to Venezuela (60%), Italy (15%) the U.S. (17%) and El Salvador (.05%).
  • Significant untapped potential for DDGS in the ruminant sector.
  • The world’s 4th largest compound feed industry running at 85 percent capacity and expanding at 4% annually.
  • Significant opportunity for ethanol exports if regulations can be put in place.

Policy Overview

  • Energy sector reform has opened opportunity for ethanol exports to Mexico, yet challenges in the courts have led to uncertainties.
  • US – Mexico – Canada (USMCA) free trade agreement signed but not yet ratified.
  • New government in Mexico took office in December 2018.