May 7, 2014

From 2008 to 2012, US exports of grain, oilseed and related products to Mexico averaged 22.2 million tonnes per year with an average annual value of US$7.3 billion, according to the Centre for North American Studies at Texas A&M University report.

The result is a 22% volume increase over the average of the early 2000s and two and a half times the value, according to the research findings.

"Higher grain and oilseed prices on the world market were certainly one major factor," said Parr Rosson, professor and head of the department of agricultural economics, Texas A&M University. "The other factor was increased demand in Mexico for grain-fed beef, which has risen, especially in major cities across that country. Increased number of cattle in feedlots resulted in not only more tonnage being fed, but higher prices as well. The third factor was a lower valued US dollar during much of this time period, especially compared to historically high values over the past 20 years."

Yellow corn, most commonly used for animal feed and corn starch, was found to be the largest volume export of the product categories, accounting for 35% in 2011. Soy, crushed for meal and oil, accounted for 13%, while hard wheat used for human consumption and grain sorghum used for animal feeding accounted for 10%.

"Together, these top four products accounted for 68% of the volume of US grain and oilseeds exports to Mexico," Rosson said. "Yellow corn also dominated export values to Mexico with 29% during 2011, followed by soy at 20%, hard wheat at 10% and sorghum at 8%."

Dried distillers grains, high fructose corn syrup and soymeal were all relatively recent introductions to the Mexico market, according to the report.

Rosson said exports of these products, which include soft wheat and rice, grew more than 500% since 2000. In total, 14 product categories are covered in this report in various degrees of detail based upon the availability of data.