The Mexican economy is expected to recover slowly in 2014 with Rabobank forecasting a growth rate of 2.9% occurring mostly in the second half of the year. However, specific factors will affect sectors of agribusiness in the country.
· Grain and oilseed production will see declining prices and margins and corn production will remain constrained.
· Animal and meat prices and margins are expected to increase, however the spread of Porcine Epidemic Diarrhea virus in North America and avian flu in Mexico are expected to threaten both the bog and poultry sectors. Beef production remains constrained because of continued contraction of the herd.
· The Mexican sugar industry is suffering low prices and tight margins as production increases and consumption weakens making exports the wild card for domestic prices. But as the world has ample sugar supplies, exports could be a challenge.
The Mexican economy is expected to recover slowly in 2014 with Rabobank forecasting a growth rate of 2.9% occurring mostly in the second half of the year. However, specific factors will affect sectors of agribusiness in the country.
· Grain and oilseed production will see declining prices and margins and corn production will remain constrained.
· Animal and meat prices and margins are expected to increase, however the spread of Porcine Epidemic Diarrhea virus in North America and avian flu in Mexico are expected to threaten both the bog and poultry sectors. Beef production remains constrained because of continued contraction of the herd.
· The Mexican sugar industry is suffering low prices and tight margins as production increases and consumption weakens making exports the wild card for domestic prices. But as the world has ample sugar supplies, exports could be a challenge.
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