Mexico has become a favourite of Canadian beef exporters.
Once a quiet market where Canada shipped livers and tongue, the Latin market has grown as prosperity has returned to the nearly 100 million potential customers.
“The value has increased more than the volume, which means the Mexican demographic is changing for better quality beef,” said Fernando de la Mora, who works for X.O. Chihuahua. It supplies meat to high end restaurants and hotels.
Mexico is 80 percent self-sufficient in beef so it must import beef to feed its young population that lives mostly in urban areas. Recurrent droughts, a feed grain shortage and little government support make it impossible for them to supply all domestic beef demands.
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However per capita income has more than doubled since 1995. The average income was $3,300 Cdn in 1995 and is estimated at $7,500 in 2000. The exchange rate is more stable and inflation remains in the single digits. This keeps beef prices steady and encourages more people to buy, de la Mora told the Canada Beef Export Federation annual meeting.
The greatest competitor is chicken. Poultry remains the most popular meat at 21.5 kilograms per capita consumption compared to beef at just over 16 kg.
Mexico imported nearly one million tonnes of meat in 2000, of which one third was poultry. Beef imports were at 299,000 tonnes. In spite of anti-dumping duties targetted at American beef, the United States is the main supplier at nearly 230,000 tonnes. Canada is the next at 45,600 tonnes, worth $136 million. However, Canada’s exports in the last five years have shown considerable gains from 1995 when Mexico took 3,150 tonnes.
Canada’s fortunes in Mexico improved after the Mexican government announced anti-dumping tariffs against some major American beef packers. The duty ranges from seven to 80 cents per kg and is expected to continue for several more years.
Canadian boneless beef and bone-in beef enters duty free, but a small tariff continues on offals. It will disappear by 2004 under the terms of the North American Free Trade Agreement.
