16 U.S. Agriculture Industry Leaders Study Mexico Export Market

Published: Mar 29, 2008

U.S.Meat Export Federation Leads International Trade Mission

A group of 16 leaders from the U.S. grain, pork and beef industries this month visited meat processing plants, retail and food services outlets, as well as cold storage facilities and freight forwarders in Mexico, to gain a deeper understanding of how U.S. red meats are currently utilized and where there are growth opportunities for U.S. beef and pork products in Mexico.

"Mexico is a critical export market for both U.S. beef and pork, and has huge upside growth potential,” said U.S. Meat Export Federation President and CEO Philip M. Seng. “As a result, the export market to Mexico is equally important for U.S. corn and soybean growers who provide the feed to support our livestock.”

Mexico remains the leading destination for U.S. beef and beef variety meat exports, with exports totaling 792.4 million pounds during 2007. The United States supplies more than 80 percent of Mexico’s beef imports. According to U.S. Department of Agriculture projections, the beef market in Mexico is projected to grow a modest 2 percent in 2008, followed by a 15 percent jump in 2009, with imports expanding 91 percent over the next 10 years.

Mexico was the second largest destination for U.S. pork and pork variety meat exports in 2007, with exports totaling 609.3 million pounds. Again, the United States dominates Mexico’s pork imports with 87 percent to 90 percent market share, and the market is expected to grow 30 percent over the coming decade.

“When you walk into a grocery store or supermarket down there and you see USMEF and U.S. meat, that’s pretty incredible,” said Tim Seifert of the Illinois Corn Marketing Board. “With 60 percent of our product (corn) going into livestock, that’s still an export for us even though we’re exporting our corn in another fashion.”

USMEF promotes U.S. beef and pork exports to Mexico through a variety of programs, including product promotions with Mexico’s leading supermarket and food service companies. In addition, it trains sales force personnel of processors, importers, distributors, and retailers of U.S. red meats in Mexico. It is implementing 56 seminars in Mexico in 2008 to better inform “influencers” (including physicians, nurses, dieticians and nutritionists) about the nutritional benefits of including red meat in a balanced, healthy diet.

USMEF also conducts seminars to better inform culinary students, chefs and distributors about the attributes of U.S. beef and pork to help build demand. It also is developing new commercial relations with potential customers in Mexico’s meat processing and meat boutique segments of the market.

“USMEF is allocating relatively more resources to Mexico’s supermarket, distribution and meat processing sectors, reflecting their importance to U.S. exports,” said Chad Russell, USMEF regional director for Mexico and the Dominican Republic. “In addition, USMEF is working with new customers, including regional supermarket chains, medium size processors and meat boutiques, to further build demand for U.S. red meats.”

The group of U.S. agri-business leaders who participated in the recent USMEF Market Expo in Mexico included:

Illinois Corn Marketing Board – Tim Seifert, Auburn, Ill., and Gary Schmalshof, Adair, Ill.
Iowa Beef Industry Council – Tom Hotz, Lone Tree, Iowa
Iowa Corn Growers Association – Jay Lynch, Humboldt, Iowa
Minnesota Soybean Research & Promotion Council – Bruce Schmoll, Claremont, Minn., and Scott Singlestad, Waseca, Minn.
Nebraska Beef Council – Mark Spurgin, Paxton, Neb.
Nebraska Cattlemen – Larry Smith, Ashland, Neb.
Nebraska Corn Board – Dave Merrell, St. Edward, Neb.
Nebraska Pork Producers – Russ Vering, Howells, Neb.
Nebraska Soybean Board – Greg Wortman, Creighton, Neb.
Certified Angus Beef – Ivette Farias, Wooster, Ohio
Hormel Foods Corporation – Feng Walkup, Austin, Minn.
Mirasco, Inc. – Eduardo Gonzales, Atlanta, Ga.

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The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn, sorghum and soybean checkoff programs.

Tim Seifert of the Illinois Corn Marketing Boardinspects U.S. meat on display at a Gigante supermarket