THE MEXICAN HOG INDUSTRY: MOVING BEYOND 2003



Table 5 - Comparison of Hog Prices and Production Costs, Selected Countries, May
2002

Country________

Price/Kg
USD

Rank in
price

Cost/Kg
USD

Rank in
cost

Feed

Cost

Japan_________

$  1.97

1

$  1.71

________23

$  0.25

Taiwan________

$  1.44

2

$  1.15

________20

$  0.20

Korea, Rep. of

$  1.39

3

$  1.38

________21

$  0.28

Mexico_______

$  1.35

4

$  0.99

_________14

$  0.23

United Kingdom

$  1.33

5

$  1.33

________22

$  0.19

Australia________

$  1.33

6

$ 0.86

__________9

$  0.16

Philippines______

$  1.31

7

$ 0.87

_________10

$  0.22

Denmark______

$  1.27

8

$ 0.90

__________11

$  0.16

Belgium/ Lux.

$  1.25

9

$  1.09

________18

$  0.17

Netherlands

$  1.25

10

$  1.09

_________17

$  0.17

Germany______

$  1.17

11

$  1.06

_________16

$  0.15

France________

$  1.12

12

$  1.04

_________15

$  0.15

Italy_________________

$  1.08

13

$  1.15

_________19

$  0.18

Czech Rep.

$  1.03

14

$ 0.92

_________13

$  0.16

Poland________

$ 0.96

15

$ 0.90

_________12

$  0.20

Spain__________

$ 0.94

16

$ 0.82

__________7

$  0.19

Thailand________

$ 0.91

17

$ 0.72

__________4

$  0.19

China_________

$ 0.87

18

$ 0.75

__________5

$  0.16

United States

$  0.86

19

$  0.84

__________8

$  0.15

Canada______

$  0.81

20

$ 0.82

__________6

$  0.13

Chile_____________

$ 0.73

21

$ 0.63

__________3

$  0.16

Brazil_____________

$ 0.61

22

$ 0.56

_________2

$  0.15

Argentina_______

$ 0.57

23

$ 0.48

_____________1

$  0.11

Source: PIC

E. Options

The following options are just afew examples of what could be done to
improve the competitiveness of Mexican hog producers, without resorting to
protectionist measures.

(1) Free trade for the entire production chain. Allowing Mexican hog
producers to import corn on an unrestricted basis would enable them to take
advantage of their proximity to the United States, one of the largest and most

12



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