August 28, 2013

US pork exports to Mexico up 20% in Q2 2013

US pork exports to Mexico in June were up about 20% on-year in June 2013, pulling first-half export results nearly even with 2012's record pace after a slow start this year.

While official results for July are not yet available, Port Import Export Reporting Service (PIERS) data suggests that July was also a very strong month for US pork exports to Mexico.

As US Meat Export Federation (USMEF) Economist, Erin Borror, explains, Mexico and Russia are the two leading destinations for exports of US hams. The resurgence in Mexican demand for US pork could not have come at a more critical time as Russia remains closed to US pork due to the alleged use of beta agonists in pork production.

Borror expects demand to remain strong towards the end of 2013, but cautions that Mexico is a very price-sensitive market. The purchasing power of the Mexican peso, which weakened last week versus the US dollar, remains a major concern.

Price sensitivity also heightens concerns about the potential for retaliatory duties on US pork in the ongoing country-of-origin labelling (COOL) dispute with Canada and Mexico.