Super Peso, livestock exports, interest rates, and inflation in Mexico; the first part of the interview with Pablo Sherwell from Rabobank

Meat

Mexico

Published Sep 5, 2023

Tridge summary

Mexico's meat exports, particularly beef and pork, have seen a decline of 12.3% in shipments compared to the same period in 2022, along with a decrease in tonnage. The appreciation of the Mexican peso by up to 20% against the dollar is the main reason for the loss in competitiveness in the international market. This appreciation is due to increased interest rates by the Bank of Mexico to combat inflation, leading to an impact on exports, decreased prices for producers, and a 1% reduction in the agri-food GDP. However, the strong peso has benefited livestock producers by lowering the cost of imported grains for animal nutrition. Despite the current challenges, the Mexican livestock sector is expected to have great commercial potential due to factors such as its location, health standards, and investments in genetics and technology.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Mexico has lost competitiveness in its meat exports, specifically beef and pork; Until the month of July, according to what the Agricultural Market Consulting Group (GCMA) reported, shipments of these proteins have contracted by 12.3% versus the same period in 2022, this in addition to talking about less tonnage (310,866 t.) as well. impacts billing, an item dictated by the Super Peso. To understand the issue, at PORCICULTURA.COM / GANADERIA.COM / AVICULTURA MX we spoke with Pablo Sherwell, leader of Search and Development Data Analysis in North America for Rabobank, who detailed that the rise in the value of the Mexican peso of up to 20% has caused Mexican meat protein to lose presence abroad. According to what was discussed with the director for our region of the financial entity of the Netherlands, the issue of the appreciation of the peso against the dollar is due to the increase in interest rates dictated by the Bank of Mexico (Banxico), this as a measure to fight inflation ...

Source: Ganaderia