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Mexico Dry Milling Market Segmentation By End Product (Ethanol, Distiller’s Dried Grains & Solubles, Fine Grits, Course Grits, Flours and Others); By Source (White Corn and Yellow Corn); By Application (Food, Animal Feed and Fuel) and By End User (Biofuel Manufacturing Companies, Animal Husbandry and Food Industry) - Industry Demand Analysis and Opportunity Assessment 2019-2028

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  • January 2019: Cargill, Incorporated announced that it has invested USD 200 million in agriculture trading, oilseeds crushing and edible oil in Pakistan. This move by the company will help in its agricultural trading and supply chain, edible oils, dairy, meat and animal feed businesses while ensuring safety and food traceability.

  • April 2019: SunOpta Inc. announced that it has acquired Sanmark B.V., a company engaged in organic oils for the food, pharmacy and cosmetic industries.

Market Overview

In the recent years, agricultural production has been developed under a scenario of opening of the Mexican economy to international competition, privatization, and deregulation, which have been the most significant elements of the macro-economic policy. Some of these elements, include adherence to the Free Trade Agreement with the United States and Canada in 1994, which have strongly influenced the evolution of the agricultural sector in Mexico. Mexico is among the world’s leading agri-food producers. Mexico continues to be the fifth largest corn producer in the world. According to the statistics by the United States Department of Agriculture (USDA), consumption of corn in Mexico has increased from42,300 metric tons in 2017-18 to 44,700 metric tons in 2019-20, whereas export of corn has increased from 958 metric tons in 2017-18 to 1000 metric tons in 2019-20.

core production

Though corn production is spread throughout the entire country, and in a wide range of climatically diverse conditions, it is primarily supplied by eight states: Sinaloa, Jalisco, Mexico, Michoacán, Chihuahua, Chiapas, Veracruz, and Tamaulipas. The increasing focus of the government for the growing agriculture produce which is opening up opportunities for several by-products requiring dry milling machines, are therefore anticipated to promote towards the growth of the Mexico dry milling market in the coming years.

The Mexico dry milling market registered a value of USD 1735.22 million in the year 2019 and is expected to garner a CAGR of 5.15% during the forecast period, i.e. 2020-2028. Additionally, the dry milling market in Mexico is also anticipated to gain an incremental $ opportunity of USD 89.43 million in the year 2020 as compared to the previous year. Moreover, the market is also expected to grow by 1.5x and gain an absolute $ opportunity of USD 902.9 million during the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT

Market Segmentation Synopsis

By End Product

The Mexico dry milling market has been segmented on the basis of end product into ethanol, distiller’s dried grains and solubles, fine grits, course grits, flours and others. The flours segment registered the largest market share of 36.28% along with a value of USD 629.56 million in the year 2019. On the other hand, the segment is also anticipated to grow by a CAGR of 5.19% during the forecast period. The flours segment is also expected to gain an incremental $ opportunity of USD 32.71 million in the year 2020 as compared to the previous year and further attain an absolute $ opportunity of USD 330.83 million by growing at 1.5x during the forecast period.

Maxico Dry milling market Graph

Market Drivers and Challenges

Growth Indicators

Growing Demand for Food & Feed Products

According to the statistics by the Foreign Agricultural Service (FAS) of Mexico, total corn consumption for the year 2020 was registered at 44.7 million metric tons, which was an increase of 2.3% compared to the previous year.

Corn is traditionally a staple food source in many parts of the world. Currently, its range of applications has also extended to feed and biofuel owing to the several beneficial properties associated with corn. Moreover, approximately 20% of the annual corn harvest is currently used by industrial corn processors to produce a variety of products such as sweeteners, starches, oils, ethanol, and animal feeds. In Mexico, corn continues to be the preferred feed grain, given the low international prices and nutritional characteristics. The increasing demand for food and feed products in Mexico, backed by the increasing utilization of corn to produce such by-products, are raising the need for the greater deployment of dry milling machines, which in turn is anticipated to drive the growth of the Mexico dry milling market over the forecast period.

Growing Agriculture Industry and Increasing Government Initiatives

The extensive agricultural support by the Government of Mexico is one of the major reasons anticipated to drive the growth of the Mexico dry milling market. The extensive support program in Mexico is managed by the Mexican Secretariat of Agriculture, Livestock, Rural Development, Fishery, and Food (Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación [SAGARPA]). Moreover, the local government of Mexico is also increasing agricultural investments to encourage and boost this sector. Subsequently, increasing food security concerns in the country have led the government to take initiatives to encourage the agriculture sector, which in turn is fuelling the demand for dry milling machines.


High Maintenance Costs

Corn grain quality is determined by growing conditions, drying operations, and harvest practices. To produce high-quality grain, hybrid selection and timely harvest of corn are some of the most important factors. The high maintenance costs to retain corn quality during the harvesting and dry milling processes is therefore the major concern that is anticipated to hamper the growth of the Mexico dry milling market.

Competitive Landscape

Some of the affluent industry leaders in the Mexico dry milling market are Cargill, Incorporated, SunOpta Inc., Bunge Ltd., Grupo Trimex, Semo Milling, LLC, Gruma, S.A.B. de C.V., Archer-Daniels-Midland Company, Pacific Ethanol, Inc. and Valero Energy Corporation.


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