MEAT+POULTRY - March 2015 - 29
Shipments to Hong Kong have also
increased quite significantly in 2014.
From shipping a total of 425 metric tons
in 2013, volume shipped to Hong Kong
in 2014 has totaled 7.7 thousand metric
tons during 2014. This simply indicates
that Mexican Beef packers have been
able to penetrate other markets despite
experiencing a year of record high
prices for feeder cattle due to a supply
shortage. However, shipments to Japan,
which is the second largest destination
for Mexican beef after the U.S., have
decreased 31.6 percent in 2014 vs.
2013. Still, total exports in 2014 have
outpaced those in 2013 but are still
short of 2012, when exports reached a
record high (see chart 2).
Finally, but not least, although exports
have been the pinnacle for Mexican
beef in the last few years, the Mexican
domestic market has also absorbed price
hikes throughout the year. Urner Barry's
Mexican Beef Cutout has surged over 20
percent throughout 2014 while feeder
cattle prices in Mexico have surged
over 30 percent. The only bright spot
at the moment is that feed costs are
significantly lower when compared to a
few years ago. This has helped feeders
keep cattle on feed longer, which in turn
has also caused prices of live cattle to
rise even further.
Overall, as the market adjusts to
current supply patterns, it might not
see a herd expansion until late 2016.
At the moment the incentive to sell
cattle at record prices might be too
good to be overlooked. However, given
the rising costs to replace animals and
Beef & Offals Exports
Japan Vietnam
16% 2%
Angola 1%
Panama 0%
Others 1%
USA
80%
2013
the inability to pass on cost increments
in the price of beef, many have opted
to look for markets were prices are
more attractive. Mexican Beef packers
have been able to sell their beef in
other markets like the U.S., Hong
Kong, and Japan, where prices are
simply higher which has also pushed
prices in the Mexican domestic market
up. Yes, the highest bidder gets the
beef, but not all sellers get access to the
same markets. Mexican Beef exporters
are gradually opening new markets and
it is expected that total exports will
reach 143 thousand metric tons for a
value of $US 942.5 million in 2014.
"EXPORTS TO THE U.S.
ARE AT AN ALL-TIME HIGH"
2
Japan Hong Kong
10% 5%
Vietnam 1%
Canada 0%
Others 1%
USA
83%
2014
w w w.mexicanbeef.org
http://www.mexicanbeef.org
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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