By Derrell Peel
New World screwworm (NWS) issues and the closure of the Mexican border for livestock have focused much attention on the Mexican beef industry. Questions have continued about if and how the Mexican industry could handle the 1 million plus head of cattle that are typically exported to the United States. The Mexican beef industry has evolved significantly in the past two decades, rendering many older views of the industry outdated and incorrect.
For the past 15 years, the total Mexican cattle inventory has averaged between 17 and 18 million head, with a total cow herd of roughly 11.5 million head. Cows make up a larger percentage of total cattle inventory (about 65%) compared to the United States, where the total cow herd is 43% of total cattle.
This is because cattle flow through the Mexican industry faster than in the United States. More young cattle are typically included in the total U.S. inventory because calves remain on pasture and in feedlots; whereas, 14%-16% of the Mexican calf crop is usually exported and cattle do not remain in feedlots as long compared to the United States.
The Mexican calf crop has averaged just more than 8 million head in recent years, with a calf crop percentage of roughly 71%, up from about 65% 25 years ago. Mexican cattle exports have averaged 1.2 million head during the last 25 years and typically represent 14%-16% of the calf crop.
Beef production in Mexico has increased an average of 2% per year in the last decade. This is the result of increased cattle slaughter, about 1.6% annually, and increasing carcass weights. Average cattle carcass weights have increased from about 600 pounds (lb.) 25 years ago to roughly 710 lb. currently. The Mexican beef industry evolved from predominantly grass-fed production to current production where most cattle are fed in feedlots. This, along with improved cattle genetics and management, has led to increased carcass weights (see Fig. 1).
Beef consumption in Mexico averages about 24 lb. per year, retail weight. Beef imports in Mexico are equivalent to roughly 10% of production in recent years, but down from about 22% of production two decades ago. Moreover, Mexico has become a significant beef exporter and has been a net exporter the past 10 years (see Fig. 2). Mexico is currently the No. 11 beef-exporting country.
The Mexican beef industry has modernized and developed significant infrastructure the past two-plus decades. Cattle and beef trade between Mexico and the United States has evolved from a long history of cattle exports to the United States to include Mexico becoming a major beef export destination for the United States, and recently with Mexico becoming a significant source of U.S. beef imports. The increasingly integrated trade relationship adds value to the beef industries in both countries.
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