Shifting Trends and Concerns Around U.S. Beef in Mexico

Shifting Trends and Concerns Around U.S. Beef in Mexico

Even though Mexico is the number two trading partner for U.S. beef - exports have been declining since the financial crisis of 2008 - according to U.S. Meat Export Federation Regional Director for Mexico Chad Russell

Russell: "There has been a shift from beef towards poultry and pork and that is primarily because of initially the devaluation of the peso visa vi the dollar after the financial crisis unfolded in the fall of 2008. Part of that later on was the raising prices of U.S. beef has had. So those two forces have in effect have caused Mexican consumers to shift to relatively less expensive forms of meat protein. So there has been double digit declines in our exports of beef to Mexico over the last five years."

Russell says that trend continues this year - but at a slower decline - down seven-percent through August this year compared to 25-percent for the entire year.

He says there is now a growing concern over mandatory Country of Origin Labeling.

Russell: "The government officials I've met with in recent months have not told me specifically but their body language and other ways of communicating -- I've been asking about what may be on their retaliation list and pork products may be on the list just like as they were earlier when the US. didn't comply to the NAFTA agreement on trucking."

Russell says that's the threat right now - though specific products on that list and possible duties that might be imposed are not clear.

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