The Role Of Mexico In The North American Beef Cattle Market

After the peso devaluation of late 1994, an already drought stricken Mexican liquidated cattle supplies and a record level of 1.6 million head of Mexican were exported to the U.S. The resulting reduction in beef production capability in Mexico, coupled with economic recovery and growing consumer demand for beef resulted, by the late 1990s in Mexico emerging as a major importer of U.S. beef. U.S. beef not only supplies a beef quantity deficit but also helps fill a growing Mexican appetite for more highly finished beef than the traditional grass-fed beef produced in Mexico. Mexico continues to export cattle to the U.S. as a result of the comparative advantage that Mexico has in cow-calf production and, at the same time, Mexico continues to purchase large quantities of beef in deference to the U.S. comparative advantages in feeding and processing beef. http://www.cattlenetwork.com/content.asp?contentid=38531

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