Beef

Mexico is currently the largest export market for U.S. beef, representing 27% or all beef exported last year.   In 2007, the U.S. exports of U.S. beef and beef variety meats to Mexico were 359,442 mt, worth over $1 billion.  As of August 2008, U.S. beef exports are up 19% in volume and 25% in value.  In 2007, the U.S. maintained an 82% market share among foreign suppliers; however, this position is being challenged by the Canadian industry that is trying to grow its current 11% share by intensifying its export development programs.  Recently, the Mexican peso has sharply devalued against the U.S. dollar, after strengthening most of the year. In addition, there are reports of weakening consumer demand as reflected in softer sales through retail outlets—the primary marketing channel through which the majority of U.S. beef is sold.  These two factors will most likely moderate growth in exports of U.S. beef over the balance of 2008.  The U.S. beef industry continues to enjoy relatively good access to the Mexican market despite the under 30 months of age limit, six prohibited products and the imposition of antidumping duties on some products from some U.S. companies.  Recently, more rigorous enforcement of Mexico’s import regulation for meat has resulted in an increase in shipment rejections, inspection delays, and in some cases delistments of U.S. plants approved to export beef to Mexico.  

Strategic Market Profile:  Mexico - Beef (PDF)

In 2007, Mexico held the number two position for U.S. pork exports – representing 20% of all U.S. pork exports – despite a 22% decrease in volume and a 20% decrease in value.  The primary causes for the decrease was a liquidation of Mexican hogs due to higher feed costs, a decrease in domestic pork meat prices, and   an increase in prices of U.S. pork.  There has been a turn around in 2008, however, with export volume up 35% and value up 46% through August 2008.  Longer term, Mexico’s pork industry is expected to move closer toward vertical integration and consolidation with higher grain prices forcing many smaller producers out of the market. As this trend continues, local product quality and consistency is expected to improve resulting in stiffer competition from the Mexican pork industry. In addition, Mexican pork producers continue to apply political pressure on the Mexican government to impose trade restrictive measures on imports of U.S. pork and to disseminate false information in the media about the quality and safety of U.S. pork entering the market.