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Mexico likely to remain a top destination for U.S. animal protein

The managing director of RaboBank International expects Mexico to remain a top destination for U.S. animal protein despite possible headwinds.

Deborah Perkins says a Mexican middle class that’s still growing should ensure a continued reliance on U.S. product.

“They have been the largest trade market for the U.S. in terms of volume for a number of protein things.  So I think they’ll continue to be important.”

Mexico is the third-largest overall market for U.S. agriculture, with sales of food and farm products exceeding $19 billion dollars annually.

Perkins tells Brownfield exchange rates could impact trade between the two countries, however.

“What’s hard to predict is (the value of) the peso.  If product just becomes too expensive, then by default (Mexico) may import less from the U.S.”

Another variable involves trade deals like the North American Free Trade Agreement and how the Trump administration proceeds.

But, Perkins says Mexico is likely to depend on U.S. animal protein imports going forward.

Brownfield spoke to Perkins at the Oilseed and Grain Trade Summit in Minneapolis.