Market Trends of Mexico Compound Feed Industry
Supplements are a Significant Segment by Product
In Mexico, the compound feed market is significantly driven by supplements, which enhance the nutritional value and efficiency of animal feed. With the rising demand for premium meat and dairy products, Mexican livestock producers face increasing pressure to elevate product quality. Meat consumption in Mexico has increased in recent years, according to the OECD statistics in 2023, Mexico consumed 4,954.4 thousand metric tons of poultry, 2,601.8 thousand metric tons of pork, and 1,613.1 thousand metric tons of beef. Consequently, feed supplements have become vital for ensuring balanced nutrition in animals, resulting in superior meat quality, enhanced milk yields, and healthier eggs.
Supplement like essential vitamins (A, D, E, etc.) and minerals (calcium, phosphorus, zinc, etc.) to compound feed boosts animal growth, bone development, and immune system strength. In Mexico’s growing poultry and dairy industries, the use of these supplements helps maximize production output. Furthermore, amino acid supplements like lysine and methionine are crucial for improving protein synthesis in animals, especially in the swine and poultry sectors, which are major components of Mexico’s livestock industry.
Companies such as Cargill, Kemin Industries Inc., Helm de Mexico, and other multinational companies are focusing on expansion and sales of their supplement products, which is strengthening the market in the country. Kemin Industries Inc., Helm de Mexico, and Archer Daniels Midland Co. are actively investing in the expansion of production facilities. In May 2022, Kemin Industries opened a new 36,000-square-foot office and a distribution center to enhance its Mexico and Central America operations.
Poultry Dominate the Market
The poultry sector’s dominance in the Mexico compound feed market is a key driver for its growth and development. Poultry, particularly broilers (chickens raised for meat) and layers (chickens for egg production), represents the largest segment in Mexico’s livestock industry. Chicken is the most consumed meat in Mexico, largely due to its affordability, accessibility, and versatility. As the demand for chicken grows, poultry producers increase production, thereby driving higher demand for compound feed to support their growing flocks. For instance, according to FAOSTAT, poultry meat production was 3.7 million metric tons in 2022, which increased to 3.8 million metric tons in 2023. This creates a constant need for quality food for poultry, ensuring productivity and health.
Poultry, especially broilers, require energy-dense and protein-rich feed to achieve rapid growth and optimal weight. Compound feed in Mexico is formulated with high concentrations of grains (corn and soy) and supplemented with amino acids, vitamins, and minerals to meet these nutritional needs. Furthermore, broilers, have a relatively short production cycle, typically reaching market weight in 6 to 7 weeks. This fast turnover requires a continuous supply of high-quality compound feed to maintain production efficiency and meet market demand, making poultry a consistent and large consumer of compound feed in Mexico.
Besides, for layers, calcium supplements are critical to ensure strong eggshell production. Specialized compound feeds are used to address these specific requirements, which further stimulates growth in the market.
