Market Concentration In Selected Agricultural And Food Sub-Sectors - Mexico

The Mexican agricultural and food sector is marked by varying degrees of market concentration by sub-sector, according to the latest GAIN Report from the USDA Foreign Agricultural Service (FAS). Animal feed and poultry meat production are much more concentrated than beef, pig or egg production.

7 June 2011

4 minute read

The Mexican agricultural and food sector is marked by varying degrees of market concentration by sub-sector, with some subsectors (e.g. beer, corn flour milling, poultry meat production, cooking fats) dominated by a limited number of players, while others (e.g. bread baking, avocado and apple growing, hog production) are highly fragmented. This has obvious implications for the relative market power exercised by market actors and thus for price discovery in the various sub-sectors.

Animal Feed

Market size, total animal feed consumption, 2010: 24.85 million metric tons (MT), valued at approximately US$5 billion.

Company shares in animal feed processing, 2010
Company	Market share (%)
AMEPA, AC	30.5
CONAFAB	22.0
UNA	19.8
Others	27.7
Total	100.0

Beef Production

Market size, production 2010: 1.75 million MT, valued at approximately US$8.75 billion.

Beef production is a multi-stage process, involving cow-calf production (ranches), feeding (feedlots), and slaughter. Cow-calf production is highly fragmented, with tens of thousands of independent ranchers nationwide. Feedlot operators are somewhat more concentrated.

Livestock slaughter is divided into two categories: slaughter in facilities federally inspected by the National Service of Health, Food Safety, and Food Quality (SENASICA), known as 'TIF facilities', and slaughter in facilities under the jurisdiction of other health authorities (federal or local). TIF facilities are eligible to export their products to foreign countries. Their ownership is highly concentrated due to the high cost of observing TIF hygiene standards; ownership of non-TIF facilities is highly fragmented.

Company shares in feedlot processing capacity, 2010
Company	Market share (%)
Grupo VIZ	16
Grupo GUSI	6
Praderas Huasteca	5
Others	89
Total	100

Included in the above section are Beef Production in Certified TIF Establishments

Market size, production 2010: 5.4 million head, with production valued at approximately US$7.5 billion.

According to industry sources, 75 per cent of the total meat from animals slaughtered in TIF-certified establishments is marketed by the top seven companies: Sukarne, Grupo Arias, Frigorifica Contreras, Procarne (Don Fileto), Carnes ViBa, Carnes el Alba, Consorcio Dipsen and Frigorifico Tabasco.

Broiler Meat

Market size, 2010: US$4.91 billion.

Company shares by production, 2010
Company	Market share (%)
Industrias Bachoco SAB de CV	38
Pilgrim’s Pride S de RL de CV	14
Tyson de Mexico	12
Others	36
Total	100

Table Eggs

Market size, 2010: US$2.47 billion.

Company shares by production capacity, 2010
Company	Market share (%)
Proteina Animal (Proan)	12.55
Industrias Bachoco SAB de CV	7.81
El Calvario	6.20
Empresas Guadalupe	5.10
Others	68.34
Total	100.00

Hog Production

Market size, pig crop, 2010: 16 million head, value estimated at US$2.5 billion assuming average live slaughter weight of 100kg.

Highly fragmented industry, with almost one million hog producers registered.

Company shares by production, 2010
Company	Market share (%)
Granjas Carroll de Mexico	10
Grupo Porcicola Mexicano (Keken)	7
Others	83
Total	100

Pork Production

Market size, production of pork 2010: 1.17 million MT carcass weight, valued at US$2.92 billion.

Company shares by production, 2010
Company	Market share (%)
Grupo Porcicola Mexicano (Keken)	10
Grupo Kowi SA de CV	8
Norson	7
Sonora Agropecuaria	6
Grupo Bafar	5
Others	64
Total	100