News

USMEF questions sustainability of Mexican market

U.S. beef exports to Mexico are strong so far this year, but there are questions about whether it can continue. The U.S. Meat Export Federation (USMEF) says the value of beef shipped to Mexico from the U.S. is up 40 percent. However, Meat Export Federation Regional Director Chad Russell says that level may be difficult to sustain.

“I think that the price point and the high prices of beef will still create challenges on behalf of the normal Mexican consumer being able to afford those cuts,” said Russell, in comments provided by the USMEF.

Mexican beef production suffered from the same drought affecting Texas and the Southwestern U.S. Plus, Russell says Mexico shipped a lot of their feeder cattle to the U.S.

“If our prices of U.S. beef were at historical levels, it would be great opportunity to ship more product down [to Mexico], but the problem is is our prices are not at that level at this point,” he said.

U.S. pork exports to Mexico are also strong so far in 2014 with 36 percent of Mexico’s market share.