Dan Halstrom: The further process sector in Mexico is by far the largest segment of consumption of U.S. pork. We’ve always been focused on the sector but we have a renewed push here recently, especially in light of the increased production here in the U.S., to make sure we are defending our share down in Mexico. We have competition from Canada with the exchange rate. They’ve gotten more competitive and we just need to be aware of this. So this effort is to solidify relationships, it’s to expand these relationships, and to make sure we defend our turf as it relates to this area of the Mexico business.
Joe Schuele: While the U.S. still has the lion’s share of Mexico’s imported pork market, the Canadian pork industry began aggressively targeting Mexico when it was shut out of the Russian market about a year ago.
Dan Halstrom: Without a doubt they have, and especially as it relates to hams – ham is by far the largest single product going into Mexico for further procession, and also for table meat. And they have definitely focused on that region.
Joe Schuele: Also looming is the threat of retaliatory tariffs as a result of the Country of Origin Labeling dispute between the U.S., Mexico and Canada.
Dan Halstrom: We have enough headwinds right now strictly with the peso devaluation. With the strengthening of the dollar against the peso recently to the tune of over 20 percent, it’s put imports in a difficult position. They still need to import but any kind of retaliation, any amount above the zero duty would not help demand at all. It would hinder it. So we have to be very aware of possible retaliation on the COOL side and hopefully that does not happen.
Joe Schuele: For more on this and other trade issues, please visit USMEF.org. For the U.S. Meat Export Federation, I’m Joe Schuele.
Source: USMEF