SuKarne is Mexico’s largest cattle feeding and processing company and is ranked as one of the largest beef packing companies in North America. Mexico is the world’s sixth largest beef producer and over 96 percent of processed beef is destined for the U.S.
The company accounts for nearly 75 percent of all Mexican beef exports. In 2015, SuKarne processed more than 1.2 million head of cattle and 2016 was projected to reach sales of $2.5 billion.
According to Dr. Derrell Peel, Oklahoma State University Extension livestock marketing specialist, the Mexican beef industry has changed dramatically in the past decade. SuKarne has capitalized on domestic and export markets during a time of significant expansion in the industry, which included widespread adoption of boxed beef compared to carcasses.
With six plants across the nation, the scale of the company has allowed for targeting premium cuts in each of Mexico’s markets, said Alltech research scientist, Daniel Graugnard. SuKarne’s ability to meet each country’s particular specifications was the cornerstone behind the company’s growth, he continued.
The early stages
SuKarne was founded and entered the livestock market in 1969 by the Vizcarra family in the state of Sinaloa, Mexico. Sinoloa is a prominent state in Mexico in terms of agriculture production. In 1972, the company began slaughtering livestock. The first meat processing plant was established in Culiacan, Sinoloa, in 1986, and an additional plant in Mexicali followed shortly after in 1989.
Import-export trade began in 1995 with the U.S. and in 1997, the SuKarne brand was acquired. Today, SuKarne works with more than 120,000 Mexican farmers and ranchers to provide livestock and agricultural products.
The company has five processing plants across Mexico. The newest plant was opened in 2016 in the state of Durango and is the world’s largest beef processing plant, at a cost of 10 billion pesos ($580 million). The plant has the capacity to feed 300,00 head of cattle daily and sprawls over 1,172 acres. For reference, one of the largest cattle finishing facilities in the western U.S., Harris Ranch, feeds up to 100,000 head daily across 800 acres.
Investments for the future
Additionally, SuKarne established a plant in Nicaragua in 2015 in hopes of expanding to different markets in Latin America that couldn’t be accessed in Mexico.
“Nicaragua needs investment and farmers want to improve the beef industry, so they are willing to sell to SuKarne,” Graugnard said.
Graugnard also said Sukarne is investing in research to improve the quality of the beef herd in Mexico in order to improve efficiency and quality. One of Mexico’s main livestock processing issues is the variation of animals supplied. Conditions can be tough in Mexico to grow animals out to preferred feedlot weights, so SuKarne is working with genetic companies to bring in improved genetics for their suppliers.
International trade
Following the tensions of North American Free Trade Agreement renegotiations, Mexico began looking for additional export markets outside of North America.
Jesus Vizcarra, chief executive and owner of SuKarne, said the company sees a great potential for sales to Muslim-majority countries.
Juan Jose Cordova, president of the Asociaciуn Mexicana de Engordadores de Ganado Bovino (AMEG, Mexican Cattle Grower’s Association), said halal certification is very important, as the majority of the world’s population is Muslim.
SuKarne has maintained a steady growth rate of 20 percent in sales over the past 10 years and obtaining halal certification to enter the Middle Eastern beef market is sure to boost growth. The company’s growth is double that of its competitors—including the U.S. — Anna Miller, WLJ correspondent
