Investing in Mexico’s Aquaculture Industry

As a healthy source of protein, fish plays an increasingly important role in feeding the world’s population. The rising demand for fish has positioned aquaculture as one of the fastest-growing food industries.

In Mexico, Cargill’s customer Regal Springs, a provider of top-grade tilapia, was experiencing dramatically increased demand for its products. Widely considered the industry standard for fresh tilapia production, Regal Springs operates aquafarms around the world, including important locations on Lakes Peñitas and Malpaso in Mexico. Though Chinese exports to the United States have dominated the market for a decade, Regal Springs’ Mexican locations are well positioned to serve American markets, given their proximity.

Recognizing this opportunity and anticipating major growth for the seafood supplier, Cargill decided in 2014 to invest US $7.8 million in its 60,000-ton fish feed plant in Tehuácan, the second-largest city in the state of Puebla. The expansion brought improved performance and enhanced quality for the feed. Also, the Cargill plant was able to supply 5,000 tons more feed each month to aquafarms like Regal Springs.

In February of 2015, the plant celebrated its official opening, attended by a number of important local leaders, including the governor of Puebla and Mexico’s secretary of agriculture. With new production capabilities and the promise of more growth, Regal Springs now sees Cargill as its preferred supplier. As aquaculture in Mexico continues to transform, Cargill is constantly exploring new ways to add value as a supplier to this important and growing industry.