MEXICO - Since June 2013 the pig industry and particularly the Mexican pig industry has been favored with the grain price reduction and the promissory 2013 and 2014 grain prices near future, additionally with the slaughter price increment. Jointly these concepts are running in a positive manner, contrary with the previous situation, write Dr Carlos Peralta, President Genesus Mexico, and R. Carlos Rodríguez.
The live weight slaughter Price during July rose to $24.5 [86.43¢/lb. USD] and the expectative for August will be higher ($25.00) [88.23¢/lb.USD].
During June, CIF Mexico´s sorghum and corn prices per Ton were $4,000 MXN [$311.15 USD] and $4,250 MXN [$330.60] respectively and during July these prices dropped to $3,900 [$303.43 USD] and $4,150 [$322.88 USD] (2.5% reduction).
The corn price futures for December 2013 would be at $3,400 [$264.48 USD] per Ton.
The feed average cost per kilogram during June was $5.20, obtaining $21.20 as a total cost per kilogram, representing $5.60 all other production cost.
With actual total production cost and live weight slaughter price, the business turned positively to the majority of the producers in Mexico.
Analyzing the Mexican pig industry we can conclude the average FCR is allocated at 3.00:1.
In general terms, the pig producers are making profits per animal slaughtered around $3.30/Kg MXN or $330 MXN per animal at 100 Kg. (USD $25.00) contrasted with average losses (USD$20.00) they got during 2013 first months.
In the following figure we could find in which position would be located each pig producer in the near future, depending basically of the FCR each one has in their own business at 100 Kg.
With these expectative of high profitability for the following months we expect the pig industry will end a profitable year.
|Genesus Global Market Report|
Prices for the week of July 22, 2013
(Liveweight a lb)
|USA (Iowa-Minnesota)||95.78 USD/lb carcass||70.88¢|
|Canada (Ontario)||1.88 CAD/kg carcass||65.93¢|
|Mexico (DF)||24.50 MXN/kg liveweight||86.43¢|
|Brazil (South Region)||2.27 BRL/kg liveweight||44.83¢|
|Russia||77 RUB/kg liveweight||$1.06|
|China||13.37 RMB/kg liveweight||98.94¢|
|Spain||1.48 EUR/kg liveweight||88.80¢|
|Viet Nam||41,000 VND/kg liveweight||88.07¢|
|South Korea||3,756 KRW/kg liveweight||$1.51|
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