Derrell Peel, specialist, talks on Mexican industry
Traveling in Mexico, Derrell Peel, Oklahoma State University Extension livestock marketing specialist, examined the growth and changes in the Mexican cattle and beef industry.
"Mexico's cattle and beef industry has evolved rapidly in the past decade," he said. "Most notable is the expansion of beef exports from Mexico after 2009. Mexican beef exports ranked 10th in the world by 2015, although recent growth in Argentinian beef exports in 2018 may push Mexico slightly out of the top 10 list of exporting countries.
"Growth in Mexican beef exports has been the result of expanded feedlot production, increased federally inspected slaughter and, most importantly, adoption of boxed beef fabricating technology. Beef carcass weights in Mexico have increased steadily over the past decade."
Peel said the United States is the biggest market for Mexican beef exports, accounting for 89 percent of total exports in 2017. Mexico is attempting to develop a more diverse set of export markets, partly the result of natural market growth and partly because of the result of uncertainty surrounding U.S. trade policy.
"Mexico is attempting to regain access to Russia and to expand beef exports to China as well as expanded exports to Muslim markets with Halal certification," he said. "Mexico was the third-largest source of U.S. beef imports in 2017, accounting for 19 percent of imports behind Australia and Canada.
"Mexico is a significant importer of beef as well and is projected to be the 11th-largest beef-importing country in 2018," he said. "Mexico, in recent years, much like the U.S. and Canada have for many years, has significant bilateral flows of beef exports and imports. These represent flows of different mixes of beef products all moving to higher values in various markets."