May 14, 2020

 

US meat supply supplemented by imports from Mexico

 

 

As major meat processing facilities in the United States shut down due to COVID-19, Mexican beef is being imported to supplement dwindling stocks, causing anger among American cattle ranchers, reported Reuters.

 

Domestic beef supply shortages in the US is expected to drop to nearly a third by end-May 2020, with prices surging 20%.

 

On the other hand, Mexico's beef industry said their good export performance is because of new measures imposed by its meat processing facilities and smaller scale operations.

 

Mexican beef imports to the US were already on the rise prior to the COVID-19 pandemic, and Juan Ley, Mexico's main cattle growers' association president said it is projected to hit double digit growth this year, predicting a 12% growth in exports to the US. The association includes major beef exporters such as SuKarne.

 

Sales to the US have increased 10% in May, with June numbers projected to be the same.

 

Data from the US Department of Agriculture (USDA) showed that from January to the first week of May, beef exports from Mexico to the US reached 87,000 tonnes, an 8,000 tonnes increase compared to the year prior.

 

Last year, Mexico was only behind Australia and Canada in supplying beef to the US, with total exports at 232,000 tonnes. Out of all Mexican beef export destinations, the US accounted for 86% (worth US$1.3 billion).

 

Ley expects Mexico to be the 2nd biggest beef exporter to the United States this year.

 

While 80% of the US beef industry is controlled by Cargill, Tyson Foods, JBS and National Beef Packing, Mexico has 30 federally regulated facilities in different operating sizes. The Mexican plants can process between 600 to 1,800 cattle daily, with workers averaging from several hundred to only 20.

 

Derrell Peel, Oklahoma State University livestock marketing specialist said Mexican imported beef are high-end cuts sold in retail, unlike other imported beef used in hamburgers.

 

Bill Bullard, Ranchers Cattlemen Action Legal Fund United Stockgrowers of America chief executive officer said American cattlemen cannot access their own marketplace, with about 500,000 cattle unable to be sent for slaughter.

 

Ley, Mexico's beef exporters association president said Mexico also imports US beef cuts, which is 6% higher this year.

 

In Mexico, only 20 workers in the meat industry have tested positive for COVID-19, with no facilities closed.

 

Some of the measures introduced in Mexico's meat processing plants include sanitisation of workers transportation, increased daily routes to maximize social distancing and spaced out working areas, locker rooms and cafeterias.

 

Workers also undergo temperature checks three times daily.

 
  -  Reuters