Cattle inventories continue falling but new programs and a focus on improving genetics and management practices may help the industry rebound. Red meat prices remain the driving factor affecting consumption which has led to reduced beef and an upswing in pork demand. Mexico’s industry and the government are looking to expand their own exports while the United States was able to export over $1 billion in pork and $725 million in beef to Mexico in 2012 with growth expected in 2013 and 2014.
The Post 2014 Mexican beef production forecast is 1.795 million metric tons (MMT) carcass weight equivalent (CWE), slightly greater than the 2013 estimate of 1.775 MMT, as feeding practices and genetic improvements are slowly aiding weight gains and carcass yields. Mexican industry members
are looking for animals with better feed conversion to place into northern Mexico’s intensive production systems as a means to lower overall feeding costs. To this end, newer genetics from Angus, Limousin, Simmental, and Charolois and their crossbreeding F1’s are being introduced into the arid and semi-arid regions around Jalisco, Sinaloa, and Nayarit. Currently, these breeds along with Hereford are dominant in the region. The presence of Indobrasil, Brahman, Guzerat, Gyr and other rustic (i.e., native and climate adapted) breeds are pervasive in central and southern Mexico.
Post’s 2013 production estimate is lowered from the 2013 USDA official estimate as consumers’ willingness to pay for beef given higher production costs is limiting expansion. Post’s 2012 production estimates were revised marginally upward based on new official information from SENASICA which is
in charge of Mexico’s federally inspected (i.e., TIF) beef slaughter facilities.
