July 29, 2004

Mexico May Produce Less Beef In 2005
 

Beef production in Mexico is expected to decline in the coming year on account of a projected increase in imports from the United States. This is because of the recently implemented and increased risk mitigation measures for BSE in the United States.

Beef production this year is expected to remain at relatively high levels, taking up the slack caused by the reduction in imports of live cattle and selected beef products due to BSE concerns, argues the U.S. agricultural attache here in a recent report on the sector.

However, exports are expected to stay strong in 2004 and 2005. The United States and Japan are the leading markets for Mexican beef, taking about two-thirds of all shipments. Live cattle exports are also expected to continue at near-record levels through 2004, but are expected to drop in 2005 due to low inventories.

Pork exports and imports both remain at near-record levels. Mexico's exports of pork, principally to Japan, have grown in recent years and are expected to continue upward due to the free trade agreement recently signed between Mexico and Japan. Pork imports continue at high levels, with the United States and Canada being the leading suppliers.