February 7, 2020

Cononavirus fears boost China's demand for Mexican beef

AMEG, Mexico's top cattle association projects demand from China for Mexican beef to rise 40% due to the coronavirus outbreak, reported Reuters.

China currently accounts for only 4% of Mexico's beef exports, but this number is expected to grow especially as most shipments have been only directed to Hong Kong. The United States accounts for 80% of Mexican beef exports.

In addition, the coronavirus outbreak has fuelled fears of China's domestic food security, as it is believed that the virus came from a market in Wuhan city, Hubei province selling illegal wildlife.

Rogelio Perez, a trade official for AMEG said the virus could boost sales of Mexican beef to a third of the overall 40% sales growth estimation. AMEG is a Mexican cattle growers association and projects future sales for the industry.

Perez said SuKarne and Grupo Gusi, two Mexican companies approved for exports to China, will benefit the most from the disruptions caused by the coronavirus. There are 42 other companies awaiting approval for export to China.

He added that the African swine fever (ASF) outbreak was another concern that has led more consumers to choose beef. ASF has caused dwindling pork supplies in China and increased prices for swine worldwide.

AMEG projected China purchased 250,000 tonnes of beef from Mexico in 2019, valued at US$40 million.

Data from the US Department of Agriculture showed China has the top global importer of beef. China is estimated to import 2.9 million tonnes of beef this year, with 390,000 tonnes of beef from Mexico ­- a 25.8% increase compared to 2018.

-      Reuters