The new location will host the company’s Mexico corporate headquarters, and a two-line premix production system.
The facility is fully operational. Devenish says it is a permanent headquarters for growing its administrative and operations teams, and to better serve its customers in the region.
Devenish's business in Mexico is primarily focused on swine and poultry production. A spokesperson told us factors driving company growth in that country include its "strong commercial team and several research supported nutritional products."
The Northern Ireland headquartered group first entered the Mexican market in 2014 with sales supported by its US operations; since then, it says it has grown its presence in the region by investing in people and facilities.
In 2016, Devenish opened an office and distribution center in Queretaro, Mexico to streamline the supply of goods to its clients. In 2019, it commissioned a swine research facility in Cuernavaca, Mexico in partnership with one of its customers. It outlined how this research facility enables it to trial multiple technologies at a commercial scale, resulting in products that are tailored to the local market.
Trends in Mexican livestock sector
As Mexico depends on feed imports, foreign exchange exposure and grain price volatility remain the most significant risks to its livestock sector, with most of its corn and oilseed needs denominated in US dollars, noted the USDA in a report from August 2021.
Mexico’s livestock sector, according to that publication, is resilient, though, in the face of numerous environmental, policy, and economic challenges.
“Livestock producers in Mexico continue a long-term trend towards vertical integration and expanded production. Domestic consumer demand for beef and pork continues an upward trajectory despite all-time high prices."