The United States Department of Agriculture (USDA) projects that Mexico’s beef exports will reach 370,000 MT CWE in 2022, an increase of 10% year-on-year.
The reason? Strong demand for exports to Asia and the United States.
Globally, Mexico is the sixth largest beef exporter in the world. It currently maintains market access to the United States, Japan, South Korea and Canada.
According to the FAO, the continuing shortfall in meat production in East Asia, mainly China, but also in Vietnam and the Philippines, was mainly behind the increase in global meat imports in the first seven months of 2021.
Despite faster recoveries in pork production in China and Vietnam, imports continued to rise to meet the imbalance between domestic supply and demand.
Demand for replenishment of strategic pork stocks in China, which was depleted in 2020 due to the release of stocks to control domestic prices, also added to import purchases.
Meanwhile, the FAO indicated that in some countries in the Middle East and North Africa, there was increased demand from the hotel industry and consumers, following a relatively faster recovery from the Covid-19 epidemic and the increase in Halal certified meat imports after completion of verification and approval processes.
The slow recovery in foodservice sales and associated intermediate demand in the Americas also contributed to an increase in global demand for meat imports, further supporting world meat prices.
Beef contains several essential nutrients including protein, iron, zinc, selenium, riboflavin, niacin, vitamin B6, vitamin B12, phosphorus, pantothenate, magnesium, and potassium.
According to the USDA, Mexico offers high-level sanitary and hygienic food processing facilities and a strong, low-wage workforce.
Mexican exports compete in the United States market due to their geographic proximity and complementary demand.
Exporters typically ship the highest quality cuts to the United States and labor-intensive trimmed beef products to Japan.
Mexico benefits from preferential market access for exports to Japan under the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP or TIPAT), as well as the Mexico-Japan Economic Partnership Agreement.
Under the CPTPP, Mexico has access to TRQs for 15,000 tons of beef exported to Japan.