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Mexican cattle and beef industry face challenges by widespread drought, analysis shows
Story Date: 3/15/2012
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Source: Andre Sulluchuco, MEATINGPLACE, 3/15/12
The Mexican cattle and beef industry is liquidating a significant number of cattle across the country due to widespread drought.
The USDA decreased its forecast for Mexican corn production for the 2011-2012 crop year from 20.5 million tons to 18.4 million tons. About 60,000 head of livestock have also been reported dead.
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist, notes the repercussions caused by these extreme weather conditions in an analysis published in the “Cow Calf Corner Newsletter” entitled Trade Implications of Changes in the Mexican Cattle and Beef Industry.
“Anecdotal reports from Mexico indicate that cow slaughter is up indicating that the drought extends beyond increased feeder cattle exports and suggests significant herd reduction,” said Peel.
As a specific example, he notes that 1.42 million head of cattle was imported by Mexico in 2011, by far the largest total since 1995. However, this figure was significantly affected by the drought. “This level of imports is not sustainable and will be offset by sharply reduced imports in the future,” Peel said.
Mexico now needs improved industry information, according to Peel, which currently does not allow for correct predictions or even how to prepare for an extended drought period.
“Without better data, is uncertain how much additional liquidation might occur in 2012 if the drought persists and thus what level of imports might be possible this year,” he wrote.
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