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Livestock imports to Mexico are on the decline

The Department of Agriculture (USDA) estimates that livestock imports to Mexico will decrease by 19%, to 30,000 head.

In 2020, livestock imports were 37,000 head.

Mexico imports cattle for breeding and less for the slaughterhouse.

However, during 2020 Mexico saw a jump in its imports for slaughter.

Compared to the livestock import peaks during 2013-2019, the current year should see a decrease starting in 2020.

Livestock imports

In 2020, about 20 shipments from Guatemala and Belize that entered through Guatemala caused December imports to increase.

These animals were imported for fattening and slaughter.

However, due to anticipated ongoing complications in logistics at the Guatemalan border, as well as some compliance issues, industry sources stated they have no intention of repeating them in 2021, according to the USDA.

The dairy sector also contributed to the importation of cattle with large purchases of dairy cows from the United States and Canada for genetics.

By 2021, the USDA expects Mexican slaughter facilities (TIF and non-TIF) to be able to store no matter how much livestock.

At the same time, by 2021, livestock exports are projected to decline 12%, ending at 1.4 million head.

The United States is expected to maintain its place as the main export destination.

In 2020, livestock exports were 1.6 million head.

As the HRI (Hotels, Restaurants and Institutional) sector reopens and other economic activity restarts in Mexico, feedlots are expected to increase their livestock inventory to keep up with their slaughter needs.

Mexican cattle exports fluctuate seasonally, and the summer months record very slow cattle exports.

In 2020, however, exports did not see that historic decline and it turned out to be an exceptionally good year for Mexican livestock exporters.

The monthly export pattern in 2021 is projected to return to a historic pattern as more cattle are kept in Mexico for slaughter.

 

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