MARKET ACCESS SECRETARIAT Global Analysis Report Competitive Trade Analysis Mexico September 2015 REPORT CONTENT SUMMARY This report looks to highlight the major sectors in Mexico, and attempts to identify the best opportunities for Canadian exports. Specifically, the data analysis that follows focuses on the top ten Mexican imports by major aggregate sector, of which is a supplier. It identifies the gap between Mexico s imports from the world and the proportion provided by, and then outlines top international competitors. Unless otherwise specified, all figures in this document are based on import data as reported by Mexico s National Institute of Statistics and Geography (INEGI), and were sourced from Global Trade Atlas (2015). MEXICAN MARKET SUMMARY Mexico is the world s ninth-largest importer of agri-food and seafood products with a value of C$30.9 billion in 2014. The country recorded a trade deficit of just C$2.3 billion in 2014, exporting C$28.6 billion of agri-food and seafood products to the world. Mexico s top agri-food and seafood supplier by far is the United States with 72.7% of total import value, followed by (6.8%), and Chile (2.2%). has consistently ranked as Mexico s second-largest import provider, and registered a value of C$2.1 billion in 2014. Mexico s agri-food and seafood imports from have been increasing at a slightly slower rate than Mexico s imports from the world. This has resulted in a widening supply gap not only overall, but among nine of Mexico s top ten import commodities. Note: Please see the Annex at the end of this document for a list of abbreviations that will be used throughout this report. CONTENTS Report Content Summary... 1 Mexican Market Summary... 1 Trade Overview... 2 Top Ten Agri-Food and Seafood Commodity Imports... 4 1. Meat and Edible Offal... 4 2. Cereals... 6 3. Oilseeds... 8 4. Dairy, Eggs and Honey... 10 5. Food Waste and Animal Feed... 12 6. Fats and Oils... 14 7. Miscellaneous Edible Preparations... 16 8. Beverages... 18 9. Edible Fruit and Nuts... 20 10. Sugar and Confectionery.. 22 Conclusion... 24 For More Information... 24 Resources... 24 Annex: Abbreviations... 24 Visit our online library of public reports for more information on this and other markets.
TRADE OVERVIEW Mexico is the ninth-largest importer of agri-food and seafood products in the world, but is also within the top 15 international exporters. The country recorded an agri-food and seafood trade deficit of just C$2.3 billion in 2014, with imports valued at just under C$30.9 billion and C$28.6 billion in exports. Sourcing a diverse range of agri-food and seafood products from international suppliers, key import commodities include meat and edible offal (16.5% of total imports), cereals (15.2%), and oilseeds (12.5%). The top three supplying countries of overall agri-food and seafood imports are the Unites States, and Chile. Mexico s Top Ten Suppliers of Agri-Food and Seafood Products, C$ Millions World 22,062.19 26,527.49 27,517.85 27,947.73 30,853.25 8.75 1 16,058.93 19,169.21 20,123.04 20,109.70 22,438.76 8.72 2 1,637.52 2,062.20 1,972.85 1,982.27 2,107.18 6.51 3 Chile 566.41 645.21 580.03 633.52 691.03 5.10 4 China 379.02 439.53 409.66 494.53 539.87 9.25 5 Spain 249.45 272.64 323.86 343.75 371.04 10.44 6 New Zealand 310.51 372.20 270.18 315.92 314.36 0.31 7 Guatemala 290.07 282.02 362.92 285.99 293.90 0.33 8 United Kingdom 144.03 152.73 177.69 221.50 239.86 13.60 9 France 170.73 189.36 206.67 294.73 227.95 7.49 10 Brazil 156.40 117.94 159.78 269.74 227.93 9.87 Mexico s Top Ten Suppliers of Agri-Food and Seafood Products, % Share PP Change 1 72.79 72.26 73.13 71.95 72.73-0.06 2 7.42 7.77 7.17 7.09 6.83-0.59 3 Chile 2.57 2.43 2.11 2.27 2.24-0.33 4 China 1.72 1.66 1.49 1.77 1.75 0.03 5 Spain 1.13 1.03 1.18 1.23 1.20 0.07 6 New Zealand 1.41 1.40 0.98 1.13 1.02-0.39 7 Guatemala 1.31 1.06 1.32 1.02 0.95-0.36 8 United Kingdom 0.65 0.58 0.65 0.79 0.78 0.13 9 France 0.77 0.71 0.75 1.05 0.74-0.03 10 Brazil 0.71 0.44 0.58 0.97 0.74 0.03 Page 2
has a large supply gap with Mexico, despite being its second-largest supplier of agri-food and seafood products. Mexico has a diverse supplier list for agri-food and seafood products, totaling 160 countries in 2014, but the dominates their import market, largely due to proximity, allowing little room for other players to gain substantial market share. Agri-food and Seafood Products Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 22,062.19 26,527.49 27,517.85 27,947.73 30,853.25 8.75 Mexico s imports from 1,637.52 2,062.20 1,972.85 1,982.27 2,107.18 6.51 Supply gap 20,424.67 24,465.30 25,545.00 25,965.47 28,746.08 8.92 Meat and edible offal represented Mexico s top-grossing import commodity in 2014, with a value of C$5.1 billion, or 16.5% of overall agri-food and seafood imports. This commodity also registered strong value sales growth over the 2010 to 2014 period, with a compound annual growth rate (CAGR) of 11.2%. Nine of Mexico s top ten import commodities posted strong growth in value sales over the last five years, with food waste and animal feed (14.5%) and dairy, eggs and honey (14.1%) as the strongest performers. In contrast, the sugar and confectionery category saw imports decline by 3.7% over the same period, likely associated to growing national initiatives to combat obesity rates. Rank Mexico s Top Ten Agri-Food and Seafood Commodity Imports from the World, C$ Millions Commodity 2010 2011 2012 2013 2014 Total Agri-Food and Seafood Imports 22,062.19 26,527.49 27,517.85 27,947.73 30,853.25 8.75 1 02 Meat and edible offal 3,320.40 3,389.06 3,544.05 4,079.19 5,076.62 11.20 2 10 Cereals 3,329.97 5,413.59 5,434.98 4,435.35 4,696.04 8.97 3 12 Oilseeds 3,101.91 3,503.65 3,707.20 3,705.25 3,845.44 5.52 4 04 Dairy, eggs and honey 1,306.92 1,648.89 1,637.82 2,005.15 2,212.26 14.06 5 23 Food waste and animal feed 1,076.09 1,383.47 1,553.09 1,635.09 1,852.18 14.54 6 15 Fats and oils 1,320.34 1,699.88 1,667.35 1,529.25 1,544.21 3.99 7 21 Miscellaneous edible preparations 1,023.01 1,027.52 1,173.91 1,314.02 1,467.44 9.44 8 22 Beverages 829.76 889.73 961.57 1,091.08 1,179.54 9.19 9 08 Edible fruit and nuts 724.04 809.54 969.06 1,084.17 1,118.01 11.47 10 17 Sugar and confectionery 1,025.35 1,139.70 1,260.35 1,031.06 882.81-3.67 Page 3
TOP TEN AGRI-FOOD AND SEAFOOD COMMODITY IMPORTS 1. MEAT AND EDIBLE OFFAL Mexico s Top Ten Suppliers of Meat and Edible Offal, C$ Millions World 3,320.40 3,389.06 3,544.05 4,079.19 5,076.62 11.20 2,847.87 2,984.70 3,177.10 3,633.27 4,390.22 11.43 339.46 270.01 246.24 296.08 449.92 7.30 Chile 72.54 66.45 71.09 80.65 100.97 8.62 Brazil - - - 0.92 39.47 N/C Australia 15.79 11.96 11.66 23.01 37.33 24.00 New Zealand 29.42 30.48 19.54 23.07 25.09-3.90 Spain 10.03 12.13 12.73 16.62 17.69 15.24 Argentina 1.71 1.71 1.96 1.83 7.83 46.25 Denmark 1.07 0.95 1.14 1.88 3.05 29.86 Nicaragua 0.19 9.32 1.53 0.11 2.00 79.40 Mexico s Top Ten Suppliers of Meat and Edible Offal, % Share PP Change 85.77 88.07 89.65 89.07 86.48 0.71 10.22 7.97 6.95 7.26 8.86-1.36 Chile 2.18 1.96 2.01 1.98 1.99-0.19 Brazil 0.00 0.00 0.00 0.02 0.78 0.78 Australia 0.48 0.35 0.33 0.56 0.74 0.26 New Zealand 0.89 0.90 0.55 0.57 0.49-0.40 Spain 0.30 0.36 0.36 0.41 0.35 0.05 Argentina 0.05 0.05 0.06 0.04 0.15 0.10 Denmark 0.03 0.03 0.03 0.05 0.06 0.03 Nicaragua 0.01 0.27 0.04 <0.01 0.04 0.03 Meat and Edible Offal Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 3,320.40 3,389.06 3,544.05 4,079.19 5,076.62 11.20 Mexico s imports from 339.46 270.01 246.24 296.08 449.92 7.30 Supply gap 2,980.94 3,119.05 3,297.81 3,783.10 4,626.70 11.62 Page 4
Mexico s Top Five Meat and Edible Offal Product Imports, C$ Millions 020312 Product Description 2012 2013 2014 Fresh/chilled bone-in pork hams, shoulders and cuts thereof 2012-14 684.85 850.43 1,230.95 34.07 020130 Fresh/chilled boneless beef 783.90 869.16 977.67 11.68 020713 020726 020714 Fresh/chilled chicken cuts and edible offal Fresh/chilled turkey cuts and edible offal Frozen chicken cuts and edible offal 459.68 580.69 598.18 14.07 229.09 241.42 355.12 24.51 250.11 267.15 323.68 13.76 Mexico s Top Five Meat and Edible Offal Product Imports and Top Supplying Countries, 2014 020312 Product Description Fresh/chilled bone-in pork hams, shoulders and cuts thereof 020130 Fresh/chilled boneless beef 020713 020726 020714 Fresh/chilled chicken cuts and edible offal Fresh/chilled turkey cuts and edible offal Frozen chicken cuts and edible offal Market Share % 1 2 3 88.72 86.70 100.00 100.00 70.42 11.28 13.04 s % Share 11.28 Uruguay 0.14 13.04 Chile 17.70 Brazil 10.79 Page 5
2. CEREALS Mexico s Top Ten Suppliers of Cereals, C$ Millions World 3,329.97 5,413.59 5,434.98 4,435.35 4,696.04 8.97 3,053.59 4,657.20 4,491.94 3,643.26 4,021.04 7.12 243.63 372.19 344.84 389.94 392.77 12.68 Russia - - 30.64 54.81 141.45 N/C Uruguay 0.96 18.22 25.75 31.40 35.88 147.12 Vietnam - - - 6.62 35.42 N/C Thailand 0.25 0.26 0.32 0.52 22.75 209.95 Australia 8.09 <0.01 19.98 33.81 18.73 23.36 Ukraine <0.01 <0.01 - <0.01 11.66 1,627.17 Argentina 1.34 0.52 93.79 112.72 7.57 54.21 Peru <0.01 <0.01-0.10 1.80 1,064.31 Mexico s Top Ten Suppliers of Cereals, % Share PP Change 91.70 86.03 82.65 82.14 85.63-6.07 7.32 6.88 6.34 8.79 8.36 1.04 Russia 0.00 0.00 0.56 1.24 3.01 3.01 Uruguay 0.03 0.34 0.47 0.71 0.76 0.73 Vietnam 0.00 0.00 0.00 0.15 0.75 0.75 Thailand 0.01 <0.01 0.01 0.01 0.48 0.47 Australia 0.24 <0.01 0.37 0.76 0.40 0.16 Ukraine <0.01 <0.01 0.00 <0.01 0.25 0.25 Argentina 0.04 0.01 1.73 2.54 0.16 0.12 Peru <0.01 <0.01 0.00 <0.01 0.04 0.04 Cereals Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 3,329.97 5,413.59 5,434.98 4,435.35 4,696.04 8.97 Mexico s imports from 243.63 372.19 344.84 389.94 392.77 12.68 Supply gap 3,086.35 5,041.40 5,090.14 4,045.41 4,303.27 8.66 Page 6
Mexico s Top Five Cereal Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 100590 Corn (maize) 2,967.77 2,079.74 2,589.45-6.59 100199 Non-durum wheat 734.57 1,395.41 1,472.75 41.60 100610 Rice in the husk (paddy or rough) 273.03 318.10 260.91-2.24 100630 Semi- or wholly-milled rice 92.71 124.18 173.59 36.83 100510 Certified corn (maize) seed, excluding sweet corn 29.19 41.27 50.68 31.76 Mexico s Top Five Cereal Product Imports and Top Supplying Countries, 2014 Product Description 100590 Corn (maize) 100199 Non-durum wheat 100610 Rice in the husk (paddy or rough) 100630 Semi- or wholly-milled rice 100510 Certified corn (maize) seed, excluding sweet corn Market Share % 1 2 3 99.96 65.26 100.00 44.76 77.10 Argentina 0.04 24.35 Colombia <0.01 Uruguay 20.67 Argentina 12.75 Russia 9.60 Vietnam 20.40 Colombia 3.15 s % Share 24.35 <0.01 Page 7
3. OILSEEDS *including seeds for sowing and fodder Mexico s Top Ten Suppliers of Oilseeds, C$ Millions World 3,101.91 3,503.65 3,707.20 3,705.25 3,845.44 5.52 2,053.78 2,106.18 2,286.76 1,982.17 2,385.93 3.82 666.21 944.97 910.82 833.24 770.10 3.69 Paraguay 67.96 99.02 96.44 307.89 165.40 24.90 China 73.14 72.45 77.92 77.49 91.30 5.70 Nicaragua 31.57 47.32 54.82 41.04 51.30 12.90 Brazil 27.53 12.92 13.52 170.36 50.35 16.30 Uruguay <0.01 - - <0.01 49.21 6,264.03 Nigeria 12.50 8.10 17.95 21.39 35.17 29.53 Israel 18.26 19.76 23.92 26.71 30.39 13.59 Chile 20.11 24.32 25.01 23.66 28.17 8.80 Mexico s Top Ten Suppliers of Oilseeds, % Share PP Change 66.21 60.11 61.68 53.50 62.05-4.16 21.48 26.97 24.57 22.49 20.03-1.45 Paraguay 2.19 2.83 2.60 8.31 4.30 2.11 China 2.36 2.07 2.10 2.09 2.37 0.01 Nicaragua 1.02 1.35 1.48 1.11 1.33 0.31 Brazil 0.89 0.37 0.36 4.60 1.31 0.42 Uruguay <0.01 0.00 0.00 <0.01 1.28 1.28 Nigeria 0.40 0.23 0.48 0.58 0.91 0.51 Israel 0.59 0.56 0.65 0.72 0.79 0.20 Chile 0.65 0.69 0.67 0.64 0.73 0.08 Oilseeds Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 3,101.91 3,503.65 3,707.20 3,705.25 3,845.44 5.52 Mexico s imports from 666.21 944.97 910.82 833.24 770.10 3.69 Supply gap 2,435.70 2,558.68 2,796.38 2,872.01 3,075.35 6.00 Page 8
Mexico s Top Five Oilseeds Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 120190 Soybeans 965.19 2,128.18 2,284.41 53.84 120510 Canola seeds 930.52 906.39 786.28-8.08 120991 Vegetable seeds for sowing 221.42 238.08 292.68 14.97 120242 Shelled peanuts 78.31 143.12 156.78 41.50 121190 Fresh/dried plants and plant parts used for perfumery, pharmacy, insecticides, etc. 38.13 37.58 53.80 18.78 Mexico s Top Five Oilseeds Product Imports and Top Supplying Countries, 2014 Product Description Market Share % 1 2 3 s % Share 120190 Soybeans 88.73 Paraguay 6.91 Uruguay 2.15 0.21 120510 Canola seeds 96.04 3.96 France <0.01 96.04 120991 Vegetable seeds for sowing 27.52 China 21.12 Israel 8.28 120242 Shelled peanuts 58.98 Nicaragua 29.84 China 4.23 121190 Fresh/dried plants and plant parts used for perfumery, pharmacy, insecticides, etc. Nigeria 65.37 Sudan 13.10 India 10.79 0.63 Page 9
4. DAIRY, EGGS AND HONEY Mexico s Top Ten Suppliers of Dairy, Eggs and Honey, C$ Millions World 1,306.92 1,648.89 1,637.82 2,005.15 2,212.26 14.06 867.31 1,099.09 1,227.88 1,618.20 1,832.20 20.56 New Zealand 231.17 287.24 183.34 195.35 168.19-7.64 Chile 61.14 56.98 49.54 54.03 51.73-4.09 Uruguay 65.04 79.39 40.57 34.86 39.94-11.47 Netherlands 28.90 22.62 28.31 28.89 34.46 4.50 Poland 0.06 19.16 2.77 1.42 18.74 325.87 0.72 8.96 11.18 15.34 14.56 112.20 Germany 5.64 17.98 9.94 4.42 9.03 12.51 Spain 2.32 2.75 34.66 5.12 6.84 31.04 Argentina 8.09 16.61 5.86 3.49 5.98-7.28 Mexico s Top Ten Suppliers of Dairy, Eggs and Honey, % Share PP Change 66.36 66.66 74.97 80.70 82.82 16.46 New Zealand 17.69 17.42 11.19 9.74 7.60-10.09 Chile 4.68 3.46 3.02 2.69 2.34-2.34 Uruguay 4.98 4.81 2.48 1.74 1.81-3.17 Netherlands 2.21 1.37 1.73 1.44 1.56-0.65 Poland <0.01 1.16 0.17 0.07 0.85 0.85 0.05 0.54 0.68 0.77 0.66 0.61 Germany 0.43 1.09 0.61 0.22 0.41-0.02 Spain 0.18 0.17 2.12 0.26 0.31 0.13 Argentina 0.62 1.01 0.36 0.17 0.27-0.35 Dairy, Eggs and Honey Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 1,306.92 1,648.89 1,637.82 2,005.15 2,212.26 14.06 Mexico s imports from 0.72 8.96 11.18 15.34 14.56 112.20 Supply gap 1,306.20 1,639.93 1,626.64 1,989.81 2,197.70 13.89 Page 10
Mexico s Top Five Dairy, Eggs and Honey Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 040210 Milk powder, >15% fat content 730.99 793.00 914.14 11.83 040690 040620 Cheese, including cheddar and Colby, not elsewhere specified Grated/powdered cheese (all kinds) 271.33 312.65 343.34 12.49 97.83 121.32 161.52 28.49 040590 Fats and oils derived from milk 107.54 151.40 150.55 18.32 040711 Fertilized chicken eggs (for incubation) 24.56 113.78 141.84 140.31 Mexico s Top Five Dairy, Eggs and Honey Product Imports and Top Supplying Countries, 2014 Product Description 040210 Milk powder, >15% fat content 040690 040620 Cheese, including cheddar and Colby, not elsewhere specified Grated/powdered cheese (all kinds) 040590 Fats and oils derived from milk 040711 Fertilized chicken eggs (for incubation) Market Share % 1 2 3 95.19 64.16 99.93 New Zealand 80.68 92.74 Poland 2.00 Uruguay 10.99 Costa Rica 0.03 12.02 Brazil 2.16 1.12 Netherlands 8.86 Denmark 0.03 Chile 4.56 Spain 2.01 s % Share 1.12 1.41 Page 11
5. FOOD WASTE AND ANIMAL FEED Japan s Top Ten Suppliers of Food Waste and Animal Feed, C$ Millions World 1,076.09 1,383.47 1,553.09 1,635.09 1,852.18 14.54 959.30 1,280.01 1,451.06 1,521.79 1,735.64 15.98 France 28.80 34.39 35.21 35.07 30.75 1.64 47.38 32.07 34.97 34.61 29.62-11.08 United Kingdom 6.95 4.58 6.19 7.37 9.01 6.72 China 11.93 8.61 7.00 9.81 7.70-10.37 Chile 3.28 6.01 3.65 5.64 6.91 20.49 Brazil 2.14 1.64 2.23 2.41 4.01 16.99 Bulgaria 1.14 2.02 1.18 1.97 3.26 29.98 Switzerland 0.71 0.28 0.85 1.01 3.16 45.20 Belgium 2.20 1.47 1.20 1.67 3.13 9.22 Japan s Top Ten Suppliers of Food Waste and Animal Feed, % Share PP Change 89.15 92.52 93.43 93.07 93.71 4.56 France 2.68 2.49 2.27 2.15 1.66-1.02 4.40 2.32 2.25 2.12 1.60-2.80 United Kingdom 0.65 0.33 0.40 0.45 0.49-0.16 China 1.11 0.62 0.45 0.60 0.42-0.69 Chile 0.30 0.43 0.23 0.35 0.37 0.07 Brazil 0.20 0.12 0.14 0.15 0.22 0.02 Bulgaria 0.11 0.15 0.08 0.12 0.18 0.07 Switzerland 0.07 0.02 0.06 0.06 0.17 0.10 Belgium 0.20 0.11 0.08 0.10 0.17-0.03 Food Waste and Animal Feed Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 1,076.09 1,383.47 1,553.09 1,635.09 1,852.18 14.54 Mexico s imports from 47.38 32.07 34.97 34.61 29.62-11.08 Supply gap 1,028.71 1,351.39 1,518.12 1,600.48 1,822.56 15.37 Page 12
Mexico s Top Five Food Waste and Animal Feed Product Imports, C$ Millions 230400 Product Description 2012 2013 2014 Soybean oilcake and other solid residues, whether or not ground or pelletized 2012-14 600.37 669.28 906.58 22.88 230330 230990 230910 230110 Brewing or distilling dregs and waste, whether or not pelletized Animal feed preparations, other than dog and cat food put up for retail sale Dog and cat food put up for retail sale Flours, meals and pellets of meat or offal, unfit for human consumption; greaves/cracklings 427.84 402.19 424.21-0.42 199.10 219.41 223.81 6.02 70.39 92.77 95.80 16.66 61.96 54.80 56.18-4.78 Mexico s Top Five Food Waste and Animal Feed Product Imports and Top Supplying Countries, 2014 230400 Product Description Soybean oilcake and other solid residues, whether or not ground or pelletized Market Share % 1 2 3 99.97 Netherlands 0.02 China <0.01 s % Share 230330 Brewing or distilling dregs and waste, whether or not pelletized 100.00 Japan <0.01 Colombia <0.01 230990 Animal feed preparations, other than dog and cat food put up for retail sale 63.28 France 13.09 United Kingdom 4.03 3.04 230910 Dog and cat food put up for retail sale 80.59 18.42 France 0.84 18.42 230110 Flours, meals and pellets of meat or offal, unfit for human consumption; greaves/cracklings 100.00 Spain <0.01 Page 13
6. FATS AND OILS Mexico s Top Ten Suppliers of Fats and Oils, C$ Millions World 1,320.34 1,699.88 1,667.35 1,529.25 1,544.21 3.99 789.74 911.00 911.47 827.49 761.95-0.89 Guatemala 88.19 187.00 209.46 175.32 158.65 15.81 Costa Rica 110.72 158.81 167.91 142.65 129.22 3.94 Honduras 86.61 121.02 88.08 80.03 78.21-2.52 Colombia 44.44 15.55 45.72 31.64 72.17 12.89 7.45 70.07 38.95 38.84 64.30 71.40 Spain 38.61 42.23 42.31 57.00 57.47 10.45 Indonesia 23.22 29.94 5.35 22.29 53.09 22.96 Argentina 4.60 29.99 33.59 16.61 25.79 53.90 Malaysia 49.31 32.68 14.87 22.13 25.40-15.28 Mexico s Top Ten Suppliers of Fats and Oils, % Share PP Change 59.81 53.59 54.67 54.11 49.34-10.47 Guatemala 6.68 11.00 12.56 11.46 10.27 3.59 Costa Rica 8.39 9.34 10.07 9.33 8.37-0.02 Honduras 6.56 7.12 5.28 5.23 5.06-1.50 Colombia 3.37 0.91 2.74 2.07 4.67 1.30 0.56 4.12 2.34 2.54 4.16 3.60 Spain 2.92 2.48 2.54 3.73 3.72 0.80 Indonesia 1.76 1.76 0.32 1.46 3.44 1.68 Argentina 0.35 1.76 2.01 1.09 1.67 1.32 Malaysia 3.73 1.92 0.89 1.45 1.64-2.09 Fats and Oils Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 1,320.34 1,699.88 1,667.35 1,529.25 1,544.21 3.99 Mexico s imports from 7.45 70.07 38.95 38.84 64.30 71.40 Supply gap 1,312.89 1,629.81 1,628.40 1,490.41 1,479.91 3.04 Page 14
Mexico s Top Five Fats and Oils Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 151110 Crude palm oil, not chemically modified 1,667.35 1,529.25 1,544.21-3.76 150210 Beef, sheep or goat tallow 422.50 377.42 357.29-8.04 150790 151800 150710 Refined soybean oil and fractions, not modified Boiled/oxidized animal/vegetable fats, oils and their fractions; inedible preparations of fats/oils Crude soybean oil and fractions, whether or not degummed 191.09 327.99 296.30 24.52 88.90 142.68 123.10 17.68 102.24 76.42 89.61-6.38 Mexico s Top Five Fats and Oils Product Imports and Top Supplying Countries, 2014 Product Description Market Share % 1 2 3 s % Share 151110 Crude palm oil, not chemically modified Guatemala 35.01 Costa Rica 27.01 Honduras 15.18 150210 Beef, sheep or goat tallow 96.25 Uruguay 2.03 1.72 1.72 150790 Refined soybean oil and fractions, not modified 99.80 Netherlands 0.08 Guatemala 0.07 151800 Boiled/oxidized animal/vegetable fats, oils and their fractions; inedible preparations of fats/oils 85.38 12.87 Germany 0.55 12.87 150710 Crude soybean oil and fractions, whether or not degummed 99.99 Costa Rica 0.01 Uruguay <0.01 Page 15
7. MISCELLANEOUS EDIBLE PREPARATIONS Mexico s Top Ten Suppliers of Miscellaneous Edible Preparations, C$ Millions World 1,023.01 1,027.52 1,173.91 1,314.02 1,467.44 9.44 778.33 770.38 920.75 1,049.57 1,144.97 10.13 Ireland 2.77 3.70 5.48 4.12 58.39 114.31 Chile 68.23 75.74 57.38 53.22 55.81-4.90 Uruguay 31.32 32.19 32.35 33.43 24.27-6.18 11.23 13.91 17.92 17.37 20.48 16.21 Spain 10.15 10.11 11.00 15.11 18.79 16.65 Colombia 11.73 14.89 16.35 16.22 18.20 11.61 Guatemala 17.07 14.50 14.68 15.34 17.37 0.44 China 10.29 10.31 11.24 13.70 13.49 6.99 France 7.56 8.56 8.22 11.47 10.28 7.99 Mexico s Top Ten Suppliers of Miscellaneous Edible Preparations, % Share PP Change 76.08 74.97 78.43 79.87 78.02 1.94 Ireland 0.27 0.36 0.47 0.31 3.98 3.71 Chile 6.67 7.37 4.89 4.05 3.80-2.87 Uruguay 3.06 3.13 2.76 2.54 1.65-1.41 1.10 1.35 1.53 1.32 1.40 0.30 Spain 0.99 0.98 0.94 1.15 1.28 0.29 Colombia 1.15 1.45 1.39 1.23 1.24 0.09 Guatemala 1.67 1.41 1.25 1.17 1.18-0.49 China 1.01 1.00 0.96 1.04 0.92-0.09 France 0.74 0.83 0.70 0.87 0.70-0.04 Miscellaneous Edible Preparations Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 1,023.01 1,027.52 1,173.91 1,314.02 1,467.44 9.44 Mexico s imports from 11.23 13.91 17.92 17.37 20.48 16.21 Supply gap 1,011.78 1,013.61 1,155.99 1,296.65 1,446.96 9.36 Page 16
Mexico s Top Five Miscellaneous Edible Preparations Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 210690 210390 210410 210120 Food preparations, not elsewhere specified Sauces and related preparations, mixed condiments and seasonings Soups, broths and related preparations Tea or mate extracts, essences and concentrates; preparations with a basis of these products 532.47 574.00 595.69 5.77 144.85 175.16 262.14 34.52 198.61 215.31 233.69 8.47 65.43 72.93 99.32 23.20 210500 Ice cream and other edible ice 50.28 59.55 63.91 12.74 Mexico s Top Five Miscellaneous Edible Preparations Product Imports and Top Supplying Countries, 2014 Product Description Market Share % 1 2 3 s % Share 210690 Food preparations, not elsewhere specified 76.75 Chile 4.12 Uruguay 4.07 2.01 210390 Sauces and related preparations, mixed condiments and seasonings 70.95 Ireland 20.94 Spain 2.00 0.54 210410 Soups, broths and related preparations 93.61 Guatemala 5.16 Spain 0.37 0.07 210120 Tea or mate extracts, essences and concentrates; preparations with a basis of these products 61.82 Chile 31.22 Spain 3.09 <0.01 210500 Ice cream and other edible ice 97.20 France 1.72 0.38 0.38 Page 17
8. BEVERAGES *does not include juices Mexico s Top Ten Suppliers of Beverages, C$ Millions World 829.76 889.73 961.57 1,091.08 1,179.54 9.19 306.01 372.04 390.26 430.66 489.16 12.44 United Kingdom 111.32 129.45 150.48 193.31 200.32 15.82 Spain 120.79 125.82 131.45 150.54 153.22 6.13 France 54.58 62.09 67.42 82.37 76.83 8.93 Italy 24.06 28.78 35.49 43.26 51.26 20.82 Chile 34.89 36.50 34.36 41.96 40.11 3.55 Guatemala 21.40 14.68 24.04 16.65 28.17 7.12 Argentina 18.53 20.46 20.07 23.44 26.56 9.41 Ireland 11.28 8.56 11.51 12.72 16.11 9.32 9.61 9.34 12.01 10.55 14.63 11.06 Mexico s Top Ten Suppliers of Beverages, % Share PP Change 36.88 41.82 40.59 39.47 41.47 4.59 United Kingdom 13.42 14.55 15.65 17.72 16.98 3.56 Spain 14.56 14.14 13.67 13.80 12.99-1.57 France 6.58 6.98 7.01 7.55 6.51-0.07 Italy 2.90 3.23 3.69 3.97 4.35 1.45 Chile 4.20 4.10 3.57 3.85 3.40-0.80 Guatemala 2.58 1.65 2.50 1.53 2.39-0.19 Argentina 2.23 2.30 2.09 2.15 2.25 0.02 Ireland 1.36 0.96 1.20 1.17 1.37 0.01 1.16 1.05 1.25 0.97 1.24 0.08 Beverages Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 829.76 889.73 961.57 1,091.08 1,179.54 9.19 Mexico s imports from 9.61 9.34 12.01 10.55 14.63 11.06 Supply gap 820.15 880.38 949.56 1,080.53 1,164.91 9.17 Page 18
Mexico s Top Five Beverage Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 220830 Whiskies 161.10 201.92 208.20 13.68 220421 Wine of fresh grapes, <2 litres 156.01 173.62 194.66 11.70 220290 Non-alcoholic beverages, not elsewhere specified (milk-based drinks, non-alcoholic beer, etc.) 137.64 148.59 175.87 13.04 220300 Beer made from malt 129.81 159.68 168.30 13.87 220710 Ethyl alcohol, >80% strength by volume 109.78 97.09 99.97-4.57 Mexico s Top Five Beverage Product Imports and Top Supplying Countries, 2014 Product Description Market Share % 1 2 3 s % Share 220830 Whiskies United Kingdom 92.73 5.61 0.91 0.91 220421 Wine of fresh grapes, <2 litres Spain 36.94 Chile 19.33 Argentina 12.58 0.04 220290 Non-alcoholic beverages, not elsewhere specified (milk-based drinks, non-alcoholic beer, etc.) 88.03 6.82 South Korea 1.21 6.82 220300 Beer made from malt 93.07 Belgium 2.01 Germany 1.56 0.26 220710 Ethyl alcohol, >80% strength by volume 78.88 Guatemala 13.61 Brazil 3.59 0.01 Page 19
9. EDIBLE FRUIT AND NUTS Mexico s Top Ten Suppliers of Edible Fruit and Nuts, C$ Millions World 724.04 809.54 969.06 1,084.17 1,118.01 11.47 557.04 617.54 796.31 893.46 927.61 13.60 Chile 117.15 132.15 120.16 127.26 124.88 1.61 Argentina 12.31 16.17 9.12 19.43 15.81 6.46 Turkey 0.77 2.11 2.88 3.05 11.52 96.82 China 6.69 11.39 13.45 11.28 9.69 9.71 Brazil 3.39 3.04 5.47 5.66 4.86 9.44 New Zealand 3.43 3.35 3.65 2.50 4.68 8.06 Thailand 3.22 3.12 4.32 3.70 3.03-1.58 India 0.32 0.97 2.36 2.55 2.58 68.84 Spain 1.80 1.96 1.72 1.69 2.03 3.04 (12) 3.97 2.67 3.12 1.71 1.55-20.93 Mexico s Top Ten Suppliers of Edible Fruit and Nuts, % Share PP Change 76.93 76.28 82.17 82.41 82.97 6.04 Chile 16.18 16.32 12.40 11.74 11.17-5.01 Argentina 1.70 2.00 0.94 1.79 1.41-0.29 Turkey 0.11 0.26 0.30 0.28 1.03 0.92 China 0.92 1.41 1.39 1.04 0.87-0.05 Brazil 0.47 0.38 0.56 0.52 0.43-0.04 New Zealand 0.47 0.41 0.38 0.23 0.42-0.05 Thailand 0.45 0.39 0.45 0.34 0.27-0.18 India 0.04 0.12 0.24 0.24 0.23 0.19 Spain 0.25 0.24 0.18 0.16 0.18-0.07 (12) 0.55 0.33 0.32 0.16 0.14-0.41 Edible Fruit and Nuts Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 724.04 809.54 969.06 1,084.17 1,118.01 11.47 Mexico s imports from 3.97 2.67 3.12 1.71 1.55-20.93 Supply gap 720.07 806.87 965.94 1,082.45 1,116.46 11.59 Page 20
Mexico s Top Five Edible Fruit and Nut Product Imports, C$ Millions Product Description 2012 2013 2014 2012-14 080810 Fresh apples 291.69 353.05 306.18 2.45 080610 Fresh grapes 124.61 138.63 151.27 10.18 080830 Fresh pears 52.13 112.89 121.65 52.76 080212 Fresh/dried shelled almonds 49.19 77.99 89.87 35.16 080231 Fresh/dried walnuts, in shell 60.91 56.53 73.39 9.77 Mexico s Top Five Edible Fruit and Nut Product Imports and Top Supplying Countries, 2014 Product Description 080810 Fresh apples 080610 Fresh grapes 080830 Fresh pears 080212 Fresh/dried shelled almonds 080231 Fresh/dried walnuts, in shell Market Share % 1 2 3 97.43 70.16 94.19 99.86 100.00 Chile 2.09 Chile 29.65 Argentina 4.56 0.10 0.37 Peru 0.19 Chile 0.95 Spain 0.05 s % Share 0.37 0.1 Page 21
10. SUGAR AND CONFECTIONERY Mexico s Top Ten Suppliers of Sugar and Confectionery, C$ Millions World 1,025.35 1,139.70 1,260.35 1,031.06 882.81-3.67 749.02 941.18 1,066.38 941.99 800.15 1.66 Guatemala 118.39 32.80 76.89 22.79 21.89-34.42 China 18.11 16.42 15.72 16.04 18.86 1.03 17.38 29.90 27.90 21.98 7.32-19.46 Brazil 30.64 18.00 32.01 0.64 6.03-33.40 Germany 3.95 4.27 4.22 3.75 4.50 3.30 Spain 5.10 3.80 4.41 3.62 4.01-5.83 Netherlands 1.69 2.66 2.81 3.52 3.96 23.77 France 3.26 4.40 0.87 1.45 3.02-1.92 Ecuador 1.93 1.52 1.39 1.46 2.59 7.62 Mexico s Top Ten Suppliers of Sugar and Confectionery, % Share PP Change 73.05 82.58 84.61 91.36 90.64 17.59 Guatemala 11.55 2.88 6.10 2.21 2.48-9.07 China 1.77 1.44 1.25 1.56 2.14 0.37 1.70 2.62 2.21 2.13 0.83-0.87 Brazil 2.99 1.58 2.54 0.06 0.68-2.31 Germany 0.39 0.37 0.33 0.36 0.51 0.12 Spain 0.50 0.33 0.35 0.35 0.45-0.05 Netherlands 0.16 0.23 0.22 0.34 0.45 0.29 France 0.32 0.39 0.07 0.14 0.34 0.02 Ecuador 0.19 0.13 0.11 0.14 0.29 0.10 Sugar and Confectionery Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Mexico s imports from the world 1,025.35 1,139.70 1,260.35 1,031.06 882.81-3.67 Mexico s imports from 17.38 29.90 27.90 21.98 7.32-19.46 Supply gap 1,007.97 1,109.80 1,232.45 1,009.08 875.49-3.46 Page 22
Mexico s Top Five Sugar and Confectionery Product Imports, C$ Millions 170260 Product Description 2012 2013 2014 Fructose (other than chemically pure), and fructose syrup with >50% fructose by weight 2012-14 614.44 498.78 403.82-18.93 170230 170490 170199 170211 Glucose (dextrose) with <20% fructose by weight Sugar confectionery (including white chocolate), not containing cocoa, not elsewhere specified Refined cane or beet sugar and chemically pure sucrose, in solid form, no added colour or flavour Lactose and lactose syrup, with >99% lactose by weight 102.78 105.96 118.47 7.36 85.86 100.78 102.46 9.24 271.13 136.58 93.97-41.13 58.69 58.20 52.26-5.64 Mexico s Top Five Sugar and Confectionery Product Imports and Top Supplying Countries, 2014 170260 Product Description Fructose (other than chemically pure), and fructose syrup with >50% fructose by weight Market Share % 1 2 3 99.49 0.51 Germany <0.01 s % Share 0.51 170230 Glucose (dextrose) with <20% fructose by weight 97.06 China 0.61 France 0.58 0.06 170490 170199 Sugar confectionery (including white chocolate), not containing cocoa, not elsewhere specified Refined cane or beet sugar and chemically pure sucrose, in solid form, no added colour or flavour 46.72 91.92 Guatemala 20.02 Brazil 5.94 China 15.23 Guatemala 1.45 3.54 <0.01 170211 Lactose and lactose syrup, with >99% lactose by weight 88.23 Germany 6.20 Netherlands 5.15 <0.01 Page 23
CONCLUSION Mexico is the world s ninth-largest importer of agri-food and seafood products, with consistently ranking as its second-largest supplier. However, the, the top-most supplier to Mexico, dominates the market, leaving little share to be gained by others. currently represents 6.8% of Mexico s agri-food and seafood imports, but this proportion has been slowly shrinking since 2011. Additionally, while Mexico s imports from have been growing, imports from the world and from many other top supplying countries have been growing at a faster rate. These factors have resulted in a significant supply gap between Mexico and that has only been widening in recent years. falls within the top suppliers of all of Mexico s top ten import commodities, except for edible fruit and nuts, where it ranked twelfth. is Mexico s second-largest supplier of meat and edible offal, cereals, and oilseeds, and has seen the supply value of these three commodities increase over the 2010 to 2014 period. However, also holds less than 2% market share in six of Mexico s other key import commodities (dairy, eggs and honey; food waste and animal feed; miscellaneous edible preparations; beverages; edible fruit and nuts; and sugar confectionery). Mexican imports from have increased across seven of the top ten commodities from 2010 to 2014, and some by a significant margin, although from a comparatively low value base. This may signal further opportunities to lessen the gap, particularly within the categories where growth in imports from outpaced growth in imports from the world, including cereals; dairy, eggs and honey; fats and oils; miscellaneous edible preparations; and beverages. FOR MORE INFORMATION International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice. Overview of Trade Commissioner Services in Mexico http://www.tradecommissioner.gc.ca/eng/offices-mexico.jsp Find a Trade Commissioner www.tradecommissioner.gc.ca/eng/find-trade-contacts.jsp For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found under Statistics and Market Information at the following link, arranged by sector and region of interest: ats-sea.agr.gc.ca RESOURCES Global Trade Atlas (March 2015). ANNEX: ABBREVIATIONS CAGR - compound annual growth rate - not applicable N/C - not calculable PP - percentage point (difference between two percentage values) Page 24
Competitive Trade Analysis: Mexico Global Analysis Report Prepared by: Shannon Fraser, Market Analyst Her Majesty the Queen in Right of, represented by the Minister of Agriculture and Agri-Food (2015). Photo Credits All photographs reproduced in this publication are used by permission of the rights holders. All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of. For additional copies, to request an alternate format, and for all other inquiries regarding this publication, please contact: Agriculture and Agri-Food, Global Analysis 1341 Baseline Road, Tower 5, 3rd floor Ottawa, ON K1A 0C5 E-mail: infoservice@agr.gc.ca The Government of has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food (AAFC) assumes no liability for any actions taken based on the information contained herein. Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of Agriculture and Agri-Food as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document. Agriculture and Agri-Food provides this document and other report services to agriculture and food industry clients free of charge. Page 25