May 25, 2007

High-priced Mexican tortilla pushes drop of US pork sales

The prices of tortilla could be a major reason why the United States is expected to sell less pork to Mexico this year, according to US economist Steve Mayer.

Mexico is the second largest export market for American hams and other hog cuts, but its pork exports plummeted by 20 percent in the first three months of 2007 compared to the same period last year.

Meyer, a livestock economist at Paragon Economics in Iowa said that prices of tortilla-a staple in Mexican food particularly for the poor families-have risen by 40 percent since late 2006, thus cutting their purchasing power for other food stuff such as pork.

Earlier this month the US Department of Agriculture (USDA) slashed its projection for 2007 US pork exports by 6 percent as Meyer says this is largely due to lower sales in Mexico.