# Mexican Beef Imports



## Vol (Jul 5, 2009)

Good news for the beef man from South of the border.

Regards, Mike

http://www.agweb.com/article/mexican_beef_imports_to_the_u.s._slow_for_the_first_time_in_48_months/


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## Tim/South (Dec 12, 2011)

Thanks Mike.


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## Tim/South (Dec 12, 2011)

The Cattle Report pinned in this section addresses the decline in Mexican imports. Since the Cattle Report updates every few days I am going to copy past rather than link.

A NOW FOR THE REST OF THE STORY

Certainly one aspect of the COOL legislation is the disruption and unnecessary costs to the U.S. beef industry but an unreported aspect of the problem is now surfacing. Mexican cattle are now remaining in Mexico and being finished there. The result is two fold. First the United States is losing needed replacement cattle. Second, Mexicans are ceasing to be our number one purchaser of beef and instead are purchasing their own beef. And finally, Mexico is producing beef and shipping the beef to the United States. We have turned Mexico from our best customer to our toughest competitor.

Derrell Peel, Oklahoma State University Extension livestock marketing specialist, has highlighted the transition pointing out the following:

"U.S. imports of Mexican beef have increased rapidly the past four years, resulting in Mexico becoming the fourth largest source of U.S. beef imports. However, imports of beef from Mexico for the month of May were down just over 4 percent year over year. This may not signify a new trend, but it is significant as it represents the first decrease after 48 months of double digit year-over-year increases," Peel says.
U.S. beef exports to Mexico have been decreasing since 2008. For most of the intervening period, a combination of high U.S. beef prices and a weaker Mexican peso have made U.S. beef more expensive in Mexico and limited U.S. beef movement into Mexico. Mexican beef prices have risen significantly over the past 20 months to catch up with U.S. prices and bring domestic beef prices closer to a balance with imported beef prices.
Though U.S. beef exports continue to fall, the decrease the past two months has been less and may indicate that U.S. beef exports to Mexico will stabilize. U.S. beef exports were down an average of 12 percent year over year for the past two months compared to average decreases of nearly 36 percent for each of the preceding 11 months.
More evidence that the supply of cattle and beef in Mexico continues to tighten is in the data on Mexican cattle imported into the U.S. Mexican cattle exports increased in 2011 and the first half of 2012 as strong U.S. markets and severe drought in northern and central Mexico forced significant cattle liquidation. Despite dropping sharply in late 2012, total Mexican cattle imports for the year totaled nearly 1.5 million head. This total included over 384,000 spayed heifers, much more than typical. In fact, U.S. imports of Mexican steers were actually down in 2012.
So far in 2013, total imports of Mexican cattle are down nearly 43 percent, over 406,000 head, compared to last year, based on weekly data through the end of June. Mexican heifer exports to the U.S. are down more than 57 percent year over year for the year to date. It appears that in Mexico, much as has happened in the U.S., significant female liquidation has occurred the past several years. Mexican beef production, cattle exports and perhaps beef exports may be curtailed for the next couple of years at least.


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## rjmoses (Apr 4, 2010)

Tim/South said:


> A NOW FOR THE REST OF THE STORY
> 
> Certainly one aspect of the COOL legislation is the disruption and unnecessary costs to the U.S. beef industry but an unreported aspect of the problem is now surfacing.
> 
> ...


Substitute product-of-your-choice for beef and country-of-your-choice for Mexico and you have the crux of our economic condition.

Ralph


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## Tim/South (Dec 12, 2011)

I have begun to to question the closing of the Cargill plant in Plainview, Texas.

True the numbers were down because of the drought but the increased numbers from Mexico seems to have covered that. A look at the weekly price offered to the feed lots south of Amarillo and they are low balled. Once accepted, that price sets the tone for the rest of the U.S. market. Claims that the plant was working a less than full capacity may be true but slaughter numbers are adjusted weekly due to demand. We fluctuate between 590K to 650K per week. Slaughtered 651K this past week during a time when demand is in decline.

I hate to sound like a conspiracy theorist. I do second guess the plant closing as potential market manipulation. If so, it bit them in the foot. The imports were to an area with the lowest selling price. They decided to keep them and become a competitor.


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