MEAT+POULTRY - March 2015 - 28

Mexican Beef
U.S. strong market for Mexican Beef
2014 would be a year that stays in the
memories of many. From record high
feeder and live cattle prices, to volatile
cutouts and relatively inexpensive
feed costs, both in the U.S. and for our
neighbor to the south, this year won't
be easily forgotten. The Mexican cattle
market is going through the same
issues as the U.S.-cattle is scarce and
commanding premiums because of
cattle liquidation a few years ago due
to drought, cutout values are at record
highs, margins at packing plants are
being squeezed, and feeding periods
are longer.
A bright side, however, where supply
is short of full needs, is that due to the
efforts of trade associations to seek
entrance to new markets, product will
find its way to those countries where

prices may be more attractive. As such,
Mexican meat packers have found
other avenues to sell their product
after Russia's ban of Mexican meat in
2013; such markets including Hong
Kong, Canada, and Chile, among
others, totaling 15 destinations in all.
Still, most of the exports are finding
their way to the U.S. (chart 1) as
tight cattle supplies and a reduced kill
in that country-while everything
else constant-has resulted in tighter
beef supplies.

than the total volume exported in
2013. This situation comes as the
U.S. copes with all-time high prices,
which in turn results in an attractive
market for Mexican beef exporters.
The interesting part is that, although
historical data suggests a strong
correlation between the MXN$/Kg
of Mexican beef for export and its
exchange rate versus the U.S. dollar,
this correlation sort of breaks as the
market in the U.S. begins to trend
sharply higher during the second half
of 2013. In other words, although a
favorable exchange rate has helped
Mexican beef exporters' export value,
the rise in MXN$/Kg seems to be
affected in a much larger way by market
fundamentals; tight supplies across the
distribution chain will send costs and
prices paid by users and consumers up.

Exports to the U.S. are at an all-time
high on a year-to-date basis totaling
119.4 thousand metric tons, versus
97.8 thousand metric tons a year ago
(chart 2). This means that during
the period of January to December,
Mexico has exported 22 percent more

Market Share per Destination 2013

Market Share per Destination 2014

Beef and Offals

Beef and Offals

97.8

20.2

2.20

.9

.4

119.4

.8

.7

.6

1.3

THOUSANDSS MT

80

70
50
60
40
30

70
50
60
40
30

20

20

10

COUNTRY

7.7

90

80

13.8

100

90

THOUSANDSS MT

100

1

10

USA JAPAN VIETNAM ANGOLA PANAMA OTHERS

COUNTRY

USA JAPAN HONG KONG VIETNAM CANADA OTHERS



http://www.sagarpa.gob.mx

MEAT+POULTRY - March 2015

Table of Contents for the Digital Edition of MEAT+POULTRY - March 2015

MEAT+POULTRY - March 2015 - 1
MEAT+POULTRY - March 2015 - 2
MEAT+POULTRY - March 2015 - 3
MEAT+POULTRY - March 2015 - 4
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MEAT+POULTRY - March 2015 - 108
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-june-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-may-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-april-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2024
https://digital.meatpoultry.com/sosland/mp/special-supplement-bacon-trends-technology-march-2024
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-december-2023
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2023
https://digital.meatpoultry.com/sosland/mp/special-supplement-ground-meat-trends-technology-july-2023
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2023
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-december-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2022
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-september-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-june-2022
https://digital.meatpoultry.com/sosland/mp/special-supplement-meat-alternative-trends-and-technology-may-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-may-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-april-2022
https://digital.meatpoultry.com/sosland/mp/special-supplement-bacon-trends-technology-march-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-february-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-january-2022
https://digital.meatpoultry.com/sosland/mp/-meatpoultry-december-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2021
https://digital.meatpoultry.com/sosland/mp/special-supplement-ground-meat-trends-technology-october-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-september-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2021
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https://digital.meatpoultry.com/sosland/mp/2021_02_01
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http://digital.meatpoultry.com/sosland/mp/2018_08_01
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https://www.nxtbook.com/sosland/mp/2017_08_01
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https://www.nxtbook.com/sosland/mp/2014_01_01
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https://www.nxtbook.com/sosland/mp/2011_02_01
https://www.nxtbook.com/sosland/mp/2011_01_01
https://www.nxtbook.com/sosland/mp/2010_12_01
https://www.nxtbook.com/sosland/mp/2010_11_01
https://www.nxtbook.com/sosland/mp/2010_10_01
https://www.nxtbook.com/sosland/mp/2010_09_01
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