The United States Department of Agriculture (USDA) highlighted three drivers of the increase in livestock slaughter at TIF plants in Mexico.
What is a TIF plant? A Federal Inspection Type Establishment is a plant regulated by the Ministry of Agriculture. Animals are slaughtered in these facilities. In addition, animal products are processed, packaged, and packed. They are also refrigerated or industrialized to ensure their destination for human consumption.
Livestock slaughter at TIF plants
The USDA forecasts that, overall, slaughter in Mexico will increase by 1% in 2025, to 7.11 million head.
In February 2024, the Mexican government reported that of the more than 10 million tons of meat products consumed in Mexico, around 6.2 million tons are produced under the TIF system.
Here are the reasons for an increase in cattle slaughter in TIF plants:
1.- Screwworm
Mexican cattle exports to the United States were put on hold after the detection of the New World screwworm (Cochliomyia hominivorax) in the country.
According to the USDA, greater availability of domestic livestock for slaughter is expected. This is because the new export rules are stricter. In addition, some producers will opt to slaughter locally to avoid the transaction costs involved in NWS procedures, which are considered higher.
As a result, producers are expected to increase slaughter. At the same time, they will maintain replacements to sustain and strengthen their herds.
2.- Demand in the hotel, restaurant, and institutional (HRI) sector
The expected increase in slaughter is also due to higher demand from the HRI sector. With an estimated utilization of installed capacity for cattle slaughter in TIF establishments currently below 60%, there is capacity available for increased slaughter.
3.- Supermarkets.
Only beef produced in TIF facilities is eligible for export. In addition, supermarkets limit their purchases to TIF for food safety reasons.
Production
In 2025, the USDA forecasts that calf production in Mexico will increase by 1%, reaching 8.7 million head, thanks to favorable conditions in the previous year. However, cattle exports are expected to decline.