The Federal Commission of Economic Competition (Cofece) of Mexico reported this Tuesday that it will initiate an investigation into the beef market.
To this end, the Commission approved a study on free competition and economic competition in the markets for the production, distribution and sale of beef and related markets, considering them part of the priority sectors for the economy, spending on households and employment in Mexico.
The study will analyze the structure and regulatory framework of the bovine meat market and its related markets, and will present recommendations in order to, where appropriate, improve its operation.
In 2020, Mexico was the seventh world producer of beef according to the Food and Agriculture Organization of the United Nations (FAO), reaching 2.1 million tons according to figures from the Ministry of Agriculture and Rural Development.
On the other hand, the national demand for beef is mainly supplied by domestic supply (93%), according to the Mexican Meat Council.
Regarding its relevance within the national production, beef represented 14% of the agri-food GDP.
The sector generated around 250,000 jobs in cattle raising and 43,000 in slaughtering, cutting and packaging of meat from cattle, poultry and other edible animals, which together represented almost 1% of the economically active population, and around 7% of the population employed in the agri-food sector.
In that same year, households allocated 19% of their spending on food to the purchase of beef, according to INEGI data.
This study is aligned with Cofece’s 2022-2025 Strategic Plan, since the beef market is part of the priority food and beverage sector established in it. Beef is a widespread consumer good, it impacts the lower-income population and is subject to regulations that sometimes hinder competition.
It is important to mention that, in accordance with the agreement to initiate the study of the meat and related products market, the final document does not constitute a prejudgment of possible violations of the Federal Economic Competition Law (LFCE).