Tag Archives: animal feed

Animal feed industry eyes NAFTA talks warily

The renegotiation of the North American Free Trade Agreement (NAFTA) between Mexico, Canada and the United States continues to trudge on, with the fate of the agreement hanging in the balance.  The U.S. government initiated the renegotiation at the behest of President Donald Trump, who has reiterated his willingness to abandon the pact on multiple occasions.  But it appears that Mr. Trump is working himself into something of a political pickle, since if he actually made good on this threats and pulled the United States out of NAFTA, it could cause serious consequences for some bedrock sectors of his own party in the run-up to mid-term Congressional elections in the U.S. this year.  This has not been lost on midwestern grain farmers, most of whom – we’re just going to go out on a limb and take a guess here – probably voted for Mr. Trump in the 2016 presidential election.  Grain exports are very important to midwestern grain farmers in states such as Nebraska, Missouri and Iowa, for which Mexico ranks as either number one or number two export market for overall exports.  Not all grain exports are used to produce animal feed, but lately we’ve been languidly gazing at statistics on livestock feed production to allay our vespertine torpor, and it looks to us like they paint a pretty clear picture about the impact of public policy on industry. Continue reading Animal feed industry eyes NAFTA talks warily

Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Steel: Mexican steel producer Altos Hornos de México (AHMSA) inaugurated a steel plate normalizing plant in the northern state of Coahuila. The US$140 million facility is expected to process steel for rail tanker cars, marine vessels and other applications requiring hardened steel. (El Tiempo, June 28, 2016)
  • Commercial real estate: Mexican developer GICSA is projecting approximately US$1.6 billion to build 15 shopping centers and mixed-use developments through 2018, the company reported. Projects include luxury sites in resort areas Playa del Carmen and Puerto Vallarta, as well as the Mexico City and Cuernavaca areas. (El Financiero, June 22, 2016)
  • Infrastructure: Canadian investment group Caisse de dépôt et placement du Québec (CDPQ) plans joint investment of US$834.5 million with Mexican investment consortium CKD Infraestructura México to develop infrastructure projects in Mexico, the Mexican government reported. Projects are expected to focus on electricity generation, transmission and distribution. (El Financiero, June 28, 2016)
  • Healthcare: U.S. wellness services provider Cenegenics plans investment of approximately US$10 million over the coming two years to open 10 clinics in Mexico, the company reported. Cenegenics’ program of “age management medicine” targets premium level consumers. (Reforma, June 17, 2016)
  • Aerospace: Spanish aerospace engine and turbine manufacturer ITP plans to expand production capacity at its plant in the central state of Querétaro, the company reported. The US$50 million investment will support design and production of components such as fuselages, radial structures, seals and hydraulic systems. (Reforma, June 20, 2016) Continue reading Recent and upcoming investment in Mexico

Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Food processing: Mexican canned foods leader Grupo Herdez inaugurated a new vegetable processing plant in the western state of Sinaloa, the company reported. The US$21 million facility includes green components such as a water treatment plant, efficient water and electricity consumption technologies and a passive solar roof system. (El Financiero, February 25, 2015)
  • Animal feed: U.S.-based agricultural commodity giant Cargill will invest approximately US$8 million to expand production capacity at its plant in the southern state of Puebla. Planned upgrades include a new extrusion line for commercial fish feed. (El Financiero, February 25, 2015)
  • Chemicals: Mexican chemicals giant Mexichem plans investment of approximately US$200 million this year in Mexico operations, the company reported. Projects include modernization of the company’s PVC plant in the eastern state of Veracruz and electricity co-generation developments. (Finamex Casa de Bolsa Comentario de Cierre, February 26, 2015)
  • Automotive: German auto maker Volkswagen announced plans to invest US$1 billion in its production plant in the southern state of Puebla. The resources are expected to increase capacity particularly for production of a sport utility vehicle (SUV) model. (El Financiero, February 20, 2015)
  • Renewable energy: Cemex Energía, a newly created energy division of Mexican cement giant Cementos Mexicanos (Cemex), plans US$30 million in investment in renewable energy developments over the next five years. Projects are expected to include wind and solar generation. (El Financiero, February 20, 2015) Continue reading Recent and upcoming investment in Mexico