September 6, 2005

USDA: Mexico Livestock Annual 2005

Mexico's 2006 exports of live cattle are forecast at 1.3 million head, marginally lower than the 2005 estimate of 1.45 million head. Despite heavy exports over the past few years, herd size and replacement supplies appear to be strong in exporting states. 

2005 weather conditions have been favorable and grazing conditions and forage supplies are expected to be good heading into 2006. 

There is some concern in Mexico that the resumption of U.S. imports of Canadian slaughter cattle could hurt premiums for Mexican cattle. 

While pork slaughter is forecast unchanged for 2006 at 14.5 million head, meat production is expected to increase as the share of hogs slaughtered in federally inspected plants increases and the industry continues to adopt modern animal husbandry practices.

Mexico continues to relax its restrictions on beef imports following the detection of Bovine Spongiform Encephalopathy (BSE) in the United States in 2003 and imports of beef are forecast to reach 350,000 MT during 2006, up 30,000 MT from 2005, but still below pre-BSE levels. 

At the writing of this report, it is unclear when the Government of Mexico might further open its market to U.S. bovine products following the implementation of USDA's minimal risk rule in July. 

Pork imports are forecast to increase slightly to 500,000 tons in 2006 as demand from the food processing and retail sectors remain strong.

For the full USDA report, click here.