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Analyst says livestock producers need Mexican export market

A livestock market analyst says President Trump’s talk of renegotiating the North American Free Trade Agreement (NAFTA) could drastically impact livestock markets.

Scott Brown with the University of Missouri says livestock producers will need unfettered access to the Mexican market to support current price levels.  “We really need that market,” he says.  “As we hear much of the trade discussion that is going on and the renegotiation discussion going on – for me the NAFTA agreement is most worrisome for me in 2017.”

With a forecast for expanding meat supplies again this year, Brown says any trade disruption would be costly.  “If Mexico were to change dramatically in terms of what they take from us – that might be enough to tip what is a pretty fine balance to the negative for pork and cattle producers,” he says.

Mexico is a top 3 destination for US beef and the number one market for US pork.

He tells Brownfield the President’s decision to withdraw from the Trans-Pacific Partnership trade agreement will also impact markets – but those wouldn’t be seen for several years.