Chemical Guide

Nowadays Mexico’s economy is enduring a steep recession—its worst since 1995. Any recovery next year will only be gradual. Total Mexican market for plant oils for both industrial and food use achieved 1.878 million tones last year.

Rapeseed and soybeans oil account for 77% of total Mexican plant oil output and 64% of consumption. In 2007 Mexico took 10th place among 10 top producers of rapeseed oil (after China, India, Germany, Canada and etc). According to FAO Mexico produced 532,000 tones of rapeseed oil in 2008, that is 10% more than in 2007. In fact Mexico is a staple importer of rape seeds. The main supplier for country is Canada. In 2008 Mexico imported 1.311 million tones of rapeseeds from Canada. Also known as colza, rapeseed oil is extracted from the seeds of the bright yellow flowering rapeseed (or oilseed rape) plant, grown all over the world.

Soybean oil takes one third in total Mexican plant oil production. The country imported significant amount of soybean oil – 214,042 tones in 2008. Import share in domestic consumption totaled 35%. Palm oil takes 20% in total plant oil consumption in Mexico. The major (85%) amount of the oil is imported. Main suppliers of palm oil to Mexico are Costa Rico, Honduras, Guatemala, etc. Palm oil in Mexico is used for industrial purposes only. Sunflower oil in Mexico is produced and consumed in small amounts approximately 4,000 tones annually for food uses. In 2008 Mexico produced 40,500 tones of cottonseed oil. Mexico together with Australia and US are the leading exporters of cottonseed oil. Corn is among basic crops cultivated in Mexico, other oil types manufactured in the country include coconut oil, safflower oil.

Mexico sees biofuels as an opportunity to diversify its energy portfolio (more than 80% of the domestic energy supply comes from fossil fuels) and promote the development of rural communities. Mexico is building their biodiesel industries with tallow and soy. Biodiesel in Mexico is also produced from animal fat and used cooking oil. Production of Biofuel based on palm oil, sunflower, safflower, canola, and soybean is also widely promoted here.

However, biodiesel production in the region is limited to a few small-scale plants with a total production of approximately 3,300 tons per year (USDA 2007).

The Biofuels Promotion and Development Law was approved by the Mexican Congress on April 26, 2007. Although the law does not contain any mandates or specific goals, it is seen as a “first step” toward developing a biofuels industry in the member economy. It also had broad support from the agricultural community.

More information on the Mexican plant oil market may be found in the report Plant Oil Market in Mexico: Business Report 2010 recently published by TD The Market Publishers, Ltd.

Source: MarketPublishers, Ltd.