ANALYSIS: Mexico’s Livestock Trade Deficit Persists Amid Volatile USD:MXD

The Grupo Consultor de Mercados Agrícolas (GCMA) reported that Mexico's livestock trade balance remains in deficit, driven by increasing domestic prices that spurred record beef and pork imports. Between January and July 2024, meat imports totaled 1.67 million tonnes, a 6.3% increase from the same period in 2023.

Homero García de la Llata, president of Mexicos National Confederation of Livestock Organizations (CNOG), pointed out that several problems and weaknesses are affecting livestock farming in Mexico. These include low productivity, limited financing, and a lack of innovation and technology....

Moderate Growth Expected for Mexican Meat Production in 2024

Comecarne, the Mexican Meat Council, has estimated that Mexican meat production will maintain moderate growth in 2024, influenced by potential disruptions in the supply of livestock feed and impacts of climate on grain and forage production.

In the previous year, total meat consumption in Mexico reached 10.3 million tonnes, including pork, beef, and chicken. This marked a 4.9% increase compared to the end of 2022, positioning Mexico as the sixth largest meat consumer globally.

According to Comecarne, the rise in consumption is largely attributed to lower consumer prices and increased...

ANALYSIS: Export Volume Challenges for Mexican Beef End Cuts

Throughout 2024, beef export levels from Mexico to the United States have been relatively low compared to previous years. This trend is largely attributed to the exchange rate, as the strength of the Mexican peso against the dollar has led to higher prices of Mexican items. Consequently, even though there is sustained demand for Mexican beef in the US, Mexican producers have been constrained in their ability to allocate beef for export, since sales in the Mexican domestic market are more profitable. This situation is particularly evident with end cuts...

ANALYSIS: Turkey Exports Tonnage: Greater Than What Meets the Eye

The turkey export figures were quite a sight to behold throughout the month of February. At 36.4 million pounds, total outward tonnage rose on a year-over-year (YoY) basis for the ninth consecutive month in a row. The most recent data gave way to a notable 46% advance from 2023. This was enough to position February’s closing figure at the highest seasonal level observed since 2021.

Total export value also realized a 20% uptick from the previous year. Although month-over-month (MoM) volume retreated by 0.07%...

ANALYSIS: December Chicken Export Volume Reaches New Seasonal Altitude

Judging by the year-end numbers, chicken export movement concluded 2023 under a relatively robust backdrop, especially when considering the ongoing global trade complications related to HPAI. At 645.2 million pounds, total outbound tonnage during December not only surpassed the previous year by 7.4%, or 66.1 million pounds, but also hit a record seasonal high.

The cumulative data, however, tells a slightly different story of how the year played out. Between January and December, total export volume retreated by 4.2% when compared with the previous year...

ANALYSIS: December Turkey Exports Leave Room For Interpretation

While Highly Pathogenic Avian Influenza (HPAI) has been slow to relinquish its ugly grasp on the turkey industry, December’s ending export figures didn’t deviate too far from the established seasonal course.

As 2023 came to a close, total outbound volume hit 42.1 million pounds. So what does this mean for market participants? Sentiment is highly dependent on one’s vantage point. On one hand, December’s export tally marks a significant 43.1% advance when compared to the year prior. On the opposite hand, it is important to bear in mind that 2022’s sweeping...

REPORTER: Peso-Dollar Exchange Rate Impact on Mexico’s Bone-In Ham Pricing

This article was originally featured in the WINTER 2024 Edition of Urner Barry’s Reporter magazine.

In 2023 the Mexican peso emerged as a symbol of economic resilience, reflecting the country’s strong  economic growth, political stability, and the draw of favorable interest rate differentials. These factors have not only contributed to the peso’s strength but have also enhanced its appeal to investors and traders in the currency and protein markets.

The performance of the peso is linked to various sectors, including agricultural trade, which has been significantly...

U.S. Lamb Showcase Highlights Quality and Market Opportunities in Mexico

USMEF brought suppliers and buyers together for a daylong event focused on U.S. lamb, including market insights and product opportunities in Mexico.

Mexico’s economy is in the midst of a broad-based economic expansion, bringing heightened demand for high-quality protein and new developments in the foodservice sector. USMEF believes the conditions in Mexico are favorable for U.S. lamb.

“At USMEF, we are seeing new opportunities in foodservice for U.S. lamb,” said Gerardo Rodriguez, USMEF’s director in Mexico, Central America and the Dominican Republic...

Another Record Month for Pork Exports to Mexico; Beef Exports Show Modest Rebound

U.S. pork exports posted another strong performance in October, led by record-large shipments to Mexico and broad-based growth elsewhere, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). October beef exports remained well below last year’s large totals but improved from September, led by stronger demand in Mexico and Taiwan.

October pork exports totaled 245,345 metric tons (mt), up 3% year-over-year and the largest since June, valued at $688.2 million – down 2% from a year ago....