February 2, 2005

Mexico cattle exports expected to fall

Mexico's 2005 exports of cattle are expected to drop by 650,000 head to 900,000 head as heavy exports during 2003 and 2004 appear to have reduced exportable cattle supplies and producers are expected to try to re-build herds. 

Imports of cattle are also expected to be up as Mexico diversifies its suppliers of live cattle in light of cattle import bans from Canada and the United States. 

Imports of beef are expected to increase 50,000 tons to 320,000 tons in 2005 following the lifting of a number of beef import restrictions that were imposed following the detection of Bovine Spongiform Encephalopathy (BSE) in the United States during late 2003.    

Imports and production of pork are forecast to increase during 2005, as key segments of Mexico¡¯s pork industry continue to modernize. Demand for imported pork products, particularly among higher income consumers, will also continue to grow.

Imports of live hogs are forecast to reach their highest level since 1998 as processors seek to increase domestic slaughter.