A major vote of confidence for the Mexican economy arrived today, not from manufacturing, but from agriculture.
Economy Minister Marcelo Ebrard announced that poultry giant Pilgrim’s will invest $1.3 billion in Mexico over the next five years (by 2030), a move designed to drastically alter the country’s protein supply chain.
🐔 THE STRATEGIC SHIFT: IMPORT SUBSTITUTION The most critical metric here isn’t the dollar figure; it’s the trade balance impact.
- The Goal: This investment aims to reduce Mexico’s chicken imports by 35%.
- The Volume: Pilgrim’s expects to generate an additional 373,000 metric tons of domestic production.
- The Jobs: Creating 4,000 direct jobs across their operations.
🤝 THE POLITICAL SIGNAL: President Claudia Sheinbaum used the announcement to reassure global capital, countering narratives about regulatory uncertainty.
- “Pilgrim’s… is making this new investment because it has done well and because it knows that investing in Mexico is safe.” — President Sheinbaum.
- Fabio Sandri (Pilgrim’s CEO) reaffirmed the company’s 40-year commitment to the region.
💡 ANALYST TAKEAWAY: “Nearshoring” is usually associated with auto parts and semiconductors, but this deal highlights the trend of “Agri-Shoring.” As global food supply chains face volatility, Mexico is prioritizing Food Sovereignty. By localizing 373k tons of production, Pilgrim’s aligns itself perfectly with the administration’s goal of reducing dependency on US grain and meat imports, securing its market share in a nation where chicken is the primary protein.
👇 Agri Investors: Will we see more multinationals investing in Mexican production to hedge against potential US export tariffs or border frictions?