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Food Supply Market for Mexico
The following is an overview of the food supply market for Mexico.
This overview addresses a wide range of topics and was based on a review of the available literature from a wide variety of sources and supplemented by interviews with persons knowledgeable about the country market.
Basic facts about the Mexican market include the following:
- Population of 101 million people.
- Gross Domestic Products (GDP) of US$915 billion.
- Per capita GDP of US$8,500.
- Landmass three times that of Texas.
During the past decade, the Mexican economy suffered a major economic crisis and has been negatively impacted by the problems in other Latin American countries. However, the economy has shown the ability to come back as has consumer purchasing power.
Table of Contents
- General Characteristics of Market & Culture
- Crops Used in Market
- Sources of Crops
- IP Crops from Field/Port to End User
- Role of Importers and Distributors
- Major Players
- Regulations Influencing Import of IP Crops
- Market Segments for IP Crops
1. General Characteristics of Market & Culture
The following information provides a summary view of the agriculture sector of the Mexican economy:
- Agriculture equals 5 percent of the nation’s GDP or US$46 billion.
- Twelve percent of the landmass is arable.
- Poultry production equals 2.1 million metric tons annually.
- Pork production equals 1.0 million metric tons annually.
- Egg production equals 33 billion pieces annually.
- Soybean imports from the United States equal 3.6 million metric tons.
- Corn imports from the United States equal 6.0 metric tons.
- Wheat imports from the United States equal 2.0 million metric tons.
Information on various aspects of the market and culture follow.
Diet. The staple foods of Mexico include corn, beans, rice, and chiles. They are typically combined with spices, vegetables, and meats or fish. Cornmeal or flour tortillas are common throughout the country as are other foods such as tacos, enchiladas, and tamales.
Population & Income. Mexico has a large population growing at a rate of 2 percent annually.
The nation’s middle and upper classes are estimated at more than 20 million people. Producers and consumers are increasingly becoming more sophisticated about the foods they produce and consume. Low-income families, which comprise half of Mexico’s population, spend 40 percent of their disposable income on food. About 75 percent of Mexico’s population lives in urban areas or towns over 2,500 inhabitants.
Agricultural Sector. As the Mexican economy has developed and diversified, the agriculture sector has declined as a contributor to national income.
Over two-thirds of Mexican farmers lack modern farming equipment and technologies. As much as a quarter of Mexico’s farmers farm by hand without animals, plows, and so forth. Approximately 40 percent of the farms are 2.5 acres or less and another 40 percent range from 2.5 to 25 acres. At the same time, there are large, sophisticated, and vertically integrated farming operations that utilize state of the art technologies.
Agricultural Production. Production has shifted away from grain and oil seed crops to higher-value products for export to the United States.
Mexico now exports large quantities of fruits and vegetables to the United States as well as coffee, beverages, live cattle and cotton. Mexico’s main imports are processed foods, oilseeds, cereals, wheat, animal/vegetable oil and fats, meat and powdered milk. Although Mexico is a large agricultural producer, the output of cereals, oilseeds and milk has been insufficient to meet growing consumption and net imports of these products has been increasing.
2. Crops Used in Market
Mexico is a unique market for IP crop in that:
- The primary use of corn is for food consumption, which means that customers in Mexico are unusually concerned about the quality of the corn they purchase.
- Approximately 90 percent of the corn produced in the market is white corn.
- The market is a major producer of organic crops, which are largely exported to the United States.
The following is an overview of the uses of commodity and IP soybeans, corn, and wheat in the Mexican market.
Soybean Uses
The total annual domestic use of commodity and IP soybeans equals 4.3 million metric tons with:
- Food uses at less than 40,000 metric tons.
- Oil and soybean meal uses at 4.3 million metric tons.
- Feed uses at 0.0 metric tons.
Demand for soybeans has been increasing at about 3 percent annually. Soybeans are used for two main purposes: production of soybean meal used primarily as a feed ingredient, and production of soybean oil used as an edible vegetable oil.
Demand for poultry, and to a lesser extent hogs and beef, continues to increase at about 3 percent annually as does consumer demand for soybean oil. These industries are the primary drivers of the increased use of soybeans in the market.
Corn Uses
The total annual domestic use of commodity and IP corn is 24.0 million metric tons with:
- Food use at 15.2 million metric tons.
- Feed use at 8.8 million metric tons.
White corn is used primarily for human consumption. Tortilla production is a major user at about 85 percent of total white corn consumption. Corn flour is the other major use of white corn.
Yellow corn is highly preferred over white corn for use in poultry and livestock feed production and for use by starch and cereal producers.
Other uses of corn include industrial as well as the productions of foods such as breakfast cereals and snack foods.
Wheat Uses
The total annual domestic use of wheat in Mexico amounts to 5.6 million metric tons with:
- Food uses at 5.4 million metric tons.
- Feed uses at 200,000 metric tons.
The types of wheat used in the market include the following: hard red winter wheat, soft red winter wheat, spring harvest bread wheat, fall harvest bread wheat, and durum wheat.
The main use for wheat is for bread, which is produced from a blend of Mexican soft wheat and imported high protein hard wheat.
A pasta noodle that is produced from a blend of soft wheat and durum wheat is also popular. Millers consider the bread wheats as good, having low gluten content and relatively high protein levels. Millers are also satisfied with the quality of the durum wheat for pasta use.
Non-GMO Uses
The total annual domestic use of IP non-GMO soybeans, corn, and wheat is estimated at 25.7 or more million metric tons with:
- Soybeans estimated at 115,000 metric tons.
- Corn estimated at 19.1 million metric tons.
- Wheat at 6.5 million metric tons.
There is no reported preference for non-GMO product in the market.
Organic Uses
Organic crops raised and used in the production of organic foods. Among organic crops, blue corn and edible beans are significant products. Approximately 15 percent of the organic product is consumed domestically and the remainder is exported.
3. Sources of Crops
The following is an overview of the sources of commodity and IP soybeans, corn, and wheat for the Mexican market.
Soybean Sources
The sources of the annual domestic use of 4.3 million metric tons of soybeans are as follows:
- Imports at 4.2 million metric tons.
- U.S. imports account for 3.6 million metric tons.
- Imports from other countries equal 600,000 metric tons.
- Domestic production of 115,000 metric tons.
U.S. shipments represent practically all of Mexico’s import requirements for soybeans. This is due in part to Mexico’s proximity to the United States as well as product availability, credit terms, and preferential NAFTA access.
The primary U.S. rail origination points for soybeans are Nebraska, Kansas, Iowa, Missouri, Minnesota, and South Dakota. In a recent twelve-month analysis of less-than 10,000 metric ton shipments by Minnesota shippers, it is estimated that approximately 450,000 metric tons of soybeans were shipped from Minnesota to Mexico.
Mexico also purchases small quantities of soybeans from suppliers in Argentina and Brazil.
Production of soybeans in Mexico has fallen substantially since 1991 as a result of changes in farm support programs and conversion to export cash crops such as vegetables. The primary production states in Mexico are Tamaulipas and Chiapas followed by the smaller production states of San Luis Potosi, Veracruz, Sinalao, and Chihuahua.
Corn Sources
The sources of Mexico’s total annual domestic use of 24.0 million metric tons of corn are as follows:
- Imports at 6.0 million metric tons.
- All imported corn was supplied by the United States.
- Domestic production of 17.9 million metric tons.
- Adjusted by an increase in stock of 100,000 metric tons.
The majority of imported corn, 80 percent, is yellow corn. Due to NAFTA regulations, most of the corn imports to Mexico originated from the United States. The primary U.S. rail origination points for corn are Kansas, Nebraska, Iowa, and Minnesota. In a recent twelve-month analysis of less-than 10,000 metric ton shipments by Minnesota shippers, it is estimated that approximately 175,000 metric tons of corn were shipped from Minnesota to Mexico.
Mexico has an import quota system for corn, and the quotas are generally allocated to the various industry market segments as follows: starch industry 30%, breakfast cereals industry 2%, livestock industry 50%, corn flour milling industry 11%, snack food industry 1%, tortilla industry 3%, and government store houses (Diconsa) 3%.
Domestically produced corn is 90 percent white corn. However, Mexico’s agricultural system cannot produce enough yellow corn to meet the yellow corn demands. The government is offering incentives to encourage farmers to switch from the production of white corn to yellow corn, sorghum, and oilseeds.
Wheat Sources
The sources of the annual domestic use of wheat of 5.6 million metric tons are as follows:
- Imports of 3.1 million metric tons.
- Imports from the United States totaled 2.0 million metric tons.
- Other imports of 1.1 million metric tons were supplied primarily by Canada.
- Domestic production of 3.4 million metric tons.
- Adjusted by decrease in stock and export of 900,000 metric tons.
Because of NAFTA most of the wheat imports into Mexico are from the U.S. and Canada.
Most of the imported U.S. wheat is No. 2 or better hard red winter wheat. However, there has been rapid growth in the demand for soft red winter wheat. Mexican wheat buyers would like to see cleaner U.S. wheat along with consistent kernel size and quality.
Many wheat importers and large end users see Canadian wheat as superior to U.S. wheat. However, for many smaller buyers the ease of shipment of U.S. wheat by rail is an important factor in the preference of U.S. wheat over Canadian wheat. Mexico is in the top five export markets for U.S. wheat.
The primary U.S. rail origination points for wheat are Texas, Kansas, Oklahoma, Colorado, Nebraska, and North Dakota. In a recent twelve-month analysis of less-than 10,000 metric ton shipments by Minnesota shippers, no shipments of wheat were identified from Minnesota shippers.
Mexico produces spring harvest bread wheat, fall harvest bread wheat, and durum wheat. Mexican overproduces durum wheat, primarily because it is higher yielding wheat and it is more resistant to disease. Much of the overproduction of durum wheat is exported or used as feed. Feed producers prefer the durum wheat to imported sorghum and corn because of its higher nutritional value.
Non-GMO Sources
Sources for the annual domestic use of non-GMO soybeans, corn, and wheat of an estimated 25.7 or more million metric tons are as follows:
- Imports at 4.3 million metric tons or more.
- U.S. imports equal 3.2 million metric tons or more.
- Imports from other countries equal 1.1 million metric tons or more.
- Domestic production at 21.4 million metric tons.
Organic Sources
The market produces organic crops with a value of approximately US$85 million. There are 28,000 producers of organic crops in Mexico.
4. IP Crops from Field/Port to End User
The following comments discuss various steps in the handling of commodity and IP crops in Mexico.
Distribution Costs. Distribution of product in Mexico is more costly and takes longer than in the United States because the distribution, handling, and transportation systems are underdeveloped. Most major markets in Mexico are inland and can only be supplied by rail or truck.
Transportation. Transporting food and agricultural products within Mexico can be costly and time-consuming. Transportation and distribution methods inside Mexico make it difficult to serve and market in multiple regions from a single point of origin.
Trucks. Mexico has few super highways, and most of these serve Mexico City. Trucking has not been an efficient means of moving grain for long distances in Mexico. There have been a number of setbacks for the trucking sector. In the mid-1990’s, over 22,500 miles of new highway were built. However, NAFTA regulations later required trucking companies to reduce load capacity and there were disadvantages using highways versus railroads because of an increase in toll fees. Economics of trucking are gradually becoming more favorable so this will become a more feasible option.
Railroads. Mexico entered the 1990s with a highly obsolete rail system. Large investments were made to recondition tracks and equipment, purchase new equipment, and improve unloading facilities. Mexican, U.S., and Canadian railroads are developing coordinated systems for single-waybill shipments of bulk and containerized products. The single-waybill system allows U.S. exporters to quote CIF (delivered) prices to Mexican customers. Cross-border rail traffic is growing at double-digit rates, and grain is the second largest product shipped by rail. There are now a large number of end users that are able to unload up to 54 cars in a day, and the next upgrade will be to make the investments necessary to enable end users to handle 100 car units. Currently there are six destinations that have 100-car unloading capacity. There are approximately 15 public ramps for handling container shipments in Mexico, and door-to-door intermodal containerized shipments are not possible.
Ports. Mexico’s port system has faired better than its trucking and railroad systems in that modernization started earlier.
Gulf Ports. For shipments by vessel, the primary Gulf port points of entry are as follows: Tampico, on the Panuco River, is an important container terminal. Veracruz, on the central part of Gulf, is Mexico’s most important port handling about 45 percent of total grain imports; it is linked by highway and railroad; however, customers sometimes redirect cargo to alternative ports to avoid demurrage due to congestion. Progreso, on the Yucatan Peninsula, is the only maritime access to the Peninsula’s industry.
Other relevant Gulf port capabilities area as follows: Altamira, on the eastern coast of Mexico, is important to areas such as Monterrey, Saltillo, Mexico City, and agricultural areas of northeastern and central Mexico. Altamira has a terminal capable of handling a 50,000 metric ton vessel every 3 days. Tuxpan, an alternative to Veracruz, is the closest port to Mexico City and has a new grain-handling terminal; however, it lacks rail links.
Pacific Ports. The primary Pacific ports of entry are: Guaymas, on the northern Pacific coast, efficiently handles grain, serves the cattle raising industry, and is a trade link to the southern part of Sonora and Mexico’s northwestern states. Manzanillo, on the western coast, is highly efficient, specializes in handling containers and bulk, and is the link between the Pacific and the western and central regions of Mexico including the State of Jalisco, the Bajio Region, the State of Mexico and Mexico City.
5. Role of Importers and Distributors
The Mexican market lacks truly national distribution systems. Therefore, most distribution systems are regional in nature.
Importers have played an important role in Mexico because they have specialized in dealing with a governmental importation system that was difficult to navigate. They have also been instrumental in moving product though Mexico’s underdeveloped transportation system.
Food product distribution is concentrated in Mexico’s three largest cities – Mexico City, Guadalajara, and Monterrey – where central warehouses and marketing facilities exist.
Over the years, U.S. agri-food exporters have formed strategic alliances and joint ventures with Mexican food processors to facilitate the entry of American agri-food products.
In Mexico, the oil seed industry is structured differently than it is in the United States. The United States has a small number of companies involved in the chain from processing to retail. In Mexico, however, there are a large number of companies that process oil seeds and only a very few vertically integrated operations. As a result, processors tend to be close to their suppliers and customers.
6. Major Players
Major players in the Mexican market, as identified in the profiling section of this study, include the following.
Governmental Agencies. Mexican Secretariat of Agriculture. Mexican Secretariat of Health.
Industry Associations. Asociación Nacional de Fabricantes de Alimentos Para Consumo Animal AC (animal feed). Asociación Nacional de Industriales de Aceites y Mantecas Comestibles (oils). Camacomtra Association for the Manufacture of Balance Feed (animal feed). Consejo Agropecuario de Jalisco (regional association). National Union for Poultry.
Potential Customers. Some of the major end users interested in purchasing direct include the following: Aceites Grasas y Deruvadis, Agribrands Purina México. Agroinsa. Almidones Mexicanos. Alpura. Arancia Corn Products. Bachoco. Buenaventura. Corporativo La Moderna. Empresas Guadalupe. Exbim/Corporativo Bimbo. Fabrica de Harinas Elizondo. Granjas Carrol de México. Gruma/Grupo Industrial Maseca. Grupo Altex. Grupo Contri. Grupo Industrial Lala. Grupo Industrial Maseca. Grupo Minsa. Grupo Porcicola Mexicano. Industrializadora de Maíz. Jerome Mezoro. La Hacienda. Maizoro. Malto Texo de México. Millco. Pabal Co. Pilgrim’s Pride. Ragasa Industries. Ralston Purina México. Tyson Mexico.
7. Regulations Influencing Import of IP Crops
The following regulations influencing the import of commodity and IP crops into Mexico were identified during the study.
NAFTA. The North American Free Trade Agreement has dramatically changed the commercial relationship between U.S. agricultural suppliers and Mexican customers. Under NAFTA, tariffs on U.S. goods have been lowered and will be phased out in the next few years. There are currently Tariff Rate Quotas (TRQs) for some agricultural products that limit the quantity of product that can be imported with a low or no tariff. Corn is covered by the TRQs, and the CY2002 import quota is 3.2 million metric tons. Under NAFTA, Mexico converted its import licensing requirement on wheat into a tariff to be phased out by January 2003.
Other Free Trade Agreements. Mexico has negotiated free trade agreements with at least 32 countries. These include the European Union, European Free Trade Area, Israel, and 10 countries in Latin America. The agreement with the EU was structured similar to NAFTA and will put EU goods on par with NAFTA. This will have a significant impact on U.S. exporters by increasing third country competition and giving strongest international trade competitors an improved position relative to the U.S. suppliers.
Standards & Certifications. Information concerning Mexican standards and product certification requirements can be obtained from the National Center for Standards and Certification Information or from the web page of the Mexican General Directorate for Standards (DGN). The DGN web site also contains a list of accredited test laboratories and verification units. It should be noted that regulations and controls sometimes change without advance notice.
Organic Certification. The government established an organic certification process in 1997 for all products classified as organic.
GMO Policy. The is no enforcement of any regulation restricting the importation or use of GMO product at the time of the preparation of this study.
Labeling. The Codex Alimentarius committees is considering standards calling for special labeling of all foods containing ingredients from biotech-enhanced commodities. Their labeling requirements could also be extended to animal feed products that contain biotech ingredients.
Corn Quota System. Mexico has a quota system that it implements under the NAFTA agreement. Tariff Rate Quotas (TRQs) certificates are allocated to importers in various industries. The system also provides for the allocation of additional “out-of-quota” import certificates with a tariff of 1 percent on yellow corn and 2 percent on white corn. Imports that exceed the TRQ and out-of-quota amounts are referred to as “over-quota” and have a tariff of 109 percent.
8. Market Segments for IP Crops
The following is a summary of major market segments in Mexico that are potential users of Minnesota’s IP crops.
Animal Feed Industry Market Segment
Compound feed production totals 20.3 million metric tons and has been growing at a rate of about 5 percent annually.
Feed production is dominated by layer and broiler feeds, which comprised 9.7 million metric tons or 48% of the feed produced. Swine and dairy are also major industry segments with 4.6 million metric tons and 3.8 million metric tons respectively. Approximately 2.2 million metric tons are use by other animals.
The industry consists of approximately 400 feed plants. Integrated animal producers generate a striking 13.3 million metric tons of feed – 66 percent of all manufactured feed -- while commercial producers supply only 7.0 million metric tons.
The size and growth potential of the animal feed industry is directly related to the utilization of formulated feeds and the size and growth of the poultry and livestock industries in Mexico. The primary drivers of the feed industry, poultry and swine producers, are increasing production and the demand for feed at the rate of 3 and 2 percent respectively each year.
The major feed ingredients used in Mexico are sorghum, except for some durum wheat in the northwest region, and soybean meal. Protection of corn producers through high farm prices and regulations limiting corn importation and use for feed has prompted the increased use of sorghum instead of corn. Since soy meal is one of the two major inputs into animal feed, the utilization of IP soybeans that produce meal with improved nutritional qualities would impact the value and cost effectiveness of animal feed in the market.
The challenges to Minnesota IP crop suppliers include the following: Educate feed mill operators, as well as their soybean meal suppliers and feed customers, on the increased output value, cost effectiveness, and improved efficiencies of Minnesota IP crops. Convince the feed mill operators, as well as their soybean meal suppliers, to specify Minnesota IP crops when purchasing crops. Encourage feed mill operators, as well as their soybean meal suppliers, to purchase direct from Minnesota suppliers. Minnesota IP crops that have trade names, such as Norsoy ™, will assist customers in specifying Minnesota IP crops, especially if they are purchasing through an importer.
Some of the Mexican feed industry players, as well as potential customers identified in the profiling section of this study, are listed below. (See the following table for a brief profile of potential customers and Volume 2 for a detailed profile of potential customers.)
Asociación Mexicana de Especialistas en Nutrición Animal (animal nutritionist); Asociacion Nacional de Fabricantes de Alimentos Para Consumo Animal (animal feed); Asociacion Nacional de Industriales de Aceites y Mantecas Comestiables (oils); Camacomtra Association for the Manufacture of Balance Feed (animal feed); Consejo Agropecuario de Jalisco (regional association); Union Ganadera Reginal de Jalisco; National Union for Poultry; Aceites de Mayo; Aceutes Grasas y Deruvadis; Agribrands Purina México; Alpura; Bachoco; Buenaventura; Corporativo La Moderna; Empresas Guadalupe; Exbim/Corporativo Bimbo; Fabrica de Harinas Elizondo; Granjas Carrol de México; Grupo Avícola Quiñónez; Grupo Industrial Lala; Grupo Porcicola Mexicano; Jerome Mezoro; La Hacienda; Malto Texo de México; Mr. Pollo; Nestle Purina México; Pilgrim’s Pride; Ragasa Industries; Ralston Purina México; Tyson Mexico; Union Comercializadora Industrial y de Servicios Alimenticios.
The animal producing industry is the primary customer of the feed mill industry market segment. Many animal producing companies may not be potential purchasers of Minnesota IP crops. However, the ability of these companies to deliver products that consumers desire at the least cost is directly related to the feed they use.
The following is a brief overview of the various segments of the animal feed industry.
Poultry Feed. Mexico produces 2.1 million metric tons of poultry products and 42 billion eggs annually.
Production of poultry meat is projected to increase by 3 percent annually. This rise is being driven by broiler production to meet the projected 3.8 percent increase in consumption. Turkey production, which comprises 10 percent of poultry consumption, is projected to increase by 8.3 percent from 12,000 tons to 13,000 tons. Poultry is popular because it is less costly for consumers than red meat.
There is limited demand for on-farm mixing of feeds. Complete feeds are preferred to supplements or individual ingredient feeds. This is due to a shortage of capital on the part of poultry and other livestock producers. The demand for oil meals in the poultry industry is expected to rise. The poultry industry is the major user of feed corn.
All layers and 85% of broilers are produced by integrators that own the feed mills supplying their feed demand.
Some of the major players in Mexico identified during the profiling of potential customers include the following: Pilgrim’s Pride; Tyson de Mexico; Buenaventura; Grupo Avicola Quinones; Jerome Mezero; Bachoco; Univasa; and Emmpresas Guadalupe; Chick Pollo; Grupo Trasgo ; Mr. Pollo; Sr. Pollo.
Swine Feed. Production of pork equals 1.0 million metric tons.
Mexico’s pork production for 2002 is forecast to increase by 2 percent. This increase reflects pork production capacity growth in large, vertically integrated companies. The continued expansion of operations with more than 500 sows more than offsets a decline in the medium and small size farms. However, even with this growth, domestic production is unable to meet consumption demand. A recent estimate of various types of producers summarized the industry as follows: 25 percent large-vertical integrators; 50 percent specialized producers; and 25 percent “backyard” producers. States in which large-scale operations are expanding include Sonora, Jalisco, and Merida.
Some of the major players in Mexico identified during the profiling of potential customers include the following: NORSON/Smithfield; Grupo Porcicolsa Mexicano; Granjas Carroll de Mexico/Smithfield; Group Kowi; Univasa.
Cattle Feed. Beef production equals 1.9 million metric tons annually.
Approximately 80 percent of the domestic production is grass-fed, and production of grain-fed cattle is limited to only a few large vertically integrated operations. Feedlots have declined dramatically because of rising feedstuff prices.
Cattle inventories have been declining for the past 8 years. However, the demand for beef is increasing because the middle-income population is demanding more meat protein and because of an expanding hotel and restaurant industry.
Pet Food. The pet food consumption in Mexico is 120,000 metric tons. There is a growing demand for high quality pet foods. This segment is dominated by dog food sales comprising over 80% of consumption. Much of the pet food is imported from the United States. Mexican-owned production generally focuses on the lower end of the market.
Some of the major players in Mexico identified during the profiling of potential customers include the following: Agribrands Purina Mexico has 154 products of which 30 are produced in Mexico. Nestle Purina Mexico. Ralston Purina México; Malta Texo de México; Anderson Clayton.
Oil Crusher Industry Market Segment
The production of soybean meal is 3.6 million metric tons annually (2000) and increasing at about 3 percent annually.
The crushing capacity continues to increase. The industry is consolidating as smaller, inefficient crushers continue to go out of business and large crushers expand capacity and market share.
The challenges to Minnesota IP crop suppliers include the following: Educate crushing operators, as well as their feed mill customers, on the increased output value, cost effectiveness, and improved efficiencies of Minnesota IP crop. Convince the crushing operators to specify Minnesota IP crops when purchasing crops. Encourage crushing operators to purchase direct from Minnesota suppliers. Minnesota IP crops that have trade names, such as Norsoy ™, will assist customers in specifying Minnesota IP crops, especially if they are purchasing through an importer.
Some of the Méxican crushing industry players, as well as potential customers identified in the profiling section of this study, are listed below. (See the following table for a brief profile of potential customers and Volume 2 for a detailed profile of potential customers.)
Ragasa Industris; Aceites Grasa y Derivados; Abastecedora Agropecuaria y Forrajera; Aceitera dl Paraiso; Aceitera Matamoros; Aceites del Mayo; Aceities Vegetales Finos; Aceites y Proteinas el Calvarioi; Food Proteins; Industsrial de Oliaginosas; Mr. Pollo; Union de Credito Agricola de Corerepe.
Food Industry Market Segment
There are an estimated 13,000 food processors with approximately 100 companies that dominate the industry. The large companies control about 80 percent of the food market.
The production of various sectors of the industry are as follows: corn flour at US$600 million; ground wheat at US$800 million; edible oils and vegetable fats at US$1 billion; starches and yeasts at US$600 million.
There are approximately 5,000 corn dough producers that supply the tortilla market. There are three major corn flour processors, three major starch producers, and three major cereal producers in the market.
Mexico’s food processing sector has expanded at a pace between 5 and 10 percent annually in recent years. The ownership of the largest food companies include wholly owned Mexican companies as well as U.S. and European multinational firms.
Organic. Mexico is more involved in producing organic products for export than importing organic products for domestic use. Approximately 85 percent of organic production is exported, primarily to the U.S. Some reasons making this a small market opportunity include strong domestic production of organic products, lack of awareness on the part of consumers about the benefits, low purchasing power, and limited distribution channels for handling organic products. In 2000 there were approximately 28,000 producers of organic products in Mexico and they fall into two main groups including the social sector which consists of small companies representing 95 percent of organic producers, and the private sector with large producers. Although organic farming is a small sub-sector within the agricultural industry, it provides close to 9 million jobs and generates over $70 million in export sales.
Some of the Mexican food industry players, as well as potential customers identified in the profiling section of this study, are listed below. (See the following table for a brief profile of potential customers and Volume 2 for a detailed profile of potential customers.)
Agro Servicios Regasa; Agroinsa; Agropecuarios Deshidratados; Almidones Mexicanos; Arancia Corn Products; Comercial de Químicos y Cosméticos; Corporativo La Moderna; Distribuciones Industriales; Exbim/Corporativo Bimbo; Fabrica de Harinas Elizondo; Gruma/Grupo Industrial Maseca; Grupo Altex; Grupo Bimbo; Grupo Comercial Real Lomo; Grupo Contri; Grupo Gamesa; Grupo Industrial Maseca; Grupo Minsa; Industrializadora de Maiz; Kellogg de México; Maizoro; Millco; Surtidora de Viveres.
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