Closure of cattle exports to the US cost Mexico $550 mln

The temporary suspension of live cattle exports from Mexico to the United States has cost Mexican producers an estimated US$550 mln. Exports are set to gradually resume on August 24 through the Agua Prieta border crossing in Sonora as authorities begin lifting restrictions introduced following the New World screwworm outbreak.

Juan Carlos Anaya, Director of Mexico’s Agricultural Markets Consulting Group, said the reopening of the border is welcome news for livestock producers. However, he argued that the restrictions remained in place longer than necessary, noting that several northern Mexican states were free of the pest when the export ban was imposed.

According to Anaya, the restrictions affected not only Mexican cattle producers but also the US meat industry. He estimates that American processors were unable to process more than 700 thsd tons of beef, with an estimated market value of nearly US$7 bln, because of reduced cattle supplies from Mexico.

During the suspension, Mexico increased exports of processed beef instead of live cattle, helping to preserve part of its bilateral meat trade with the United States. Nevertheless, Anaya said those shipments were insufficient to offset the financial losses caused by the export ban.

Commenting on the upcoming review of the USMCA trade agreement, Anaya said agricultural integration between Mexico, the United States, and Canada remains strategically important. In his view, the current disagreements are driven mainly by political issues, including migration and security, rather than agricultural trade.

Tags: Mexico, USA