Market Intelligence Update from Canada Beef: Mexico imports more beef
Canadian beef is gaining ground in Mexico this year, having achieved a 12 per cent greater market share in Mexico, reaching 14.2 per cent compared to 2022.
In August, Mexico experienced its highest total beef imports of the year, reaching 19,248 MT, which is a 30.6 per cent increase compared to the same period last year.
The total value of these imports amounted to US$151.7 million. From January to August, the accumulated total of beef imports reached 127,939 mt valued at US$1 billion. Specifically for the month of August, Canadian beef exports to Mexico amounted to 2,271 MT valued at US$17.9 million. The total accumulated Canadian beef exports for 2023 reached 18,138 MT, showing a significant growth of 33 per cent compared to the same period last year. Out of the total exports from January to August, muscle cuts accounted for 86.5 per cent (15,690 MT), while offals represented 13.5 per cent (2,356 MT). The total value of these shipments reached US$144.4 million, which is an 18 per cent increase year-over-year.
Lower cattle prices are forecasted to increase beef demand in the coming months for local and imported beef. The U.S. dominated the beef import market from Jan-Aug, with 90,252 MT, valued at US$754.4 million. Muscle meats accounted for 65.7 per cent (59,358 MT), while variety meats made up 34.2 per cent (28,358 MT) of their imports. Mexico also imported 117 MT of beef from Argentina, worth US$1.66 million, and 283 MT from Brazil, valued at US$1.2 million, from Mar-Aug. Additionally, 77 MT of beef from Chile, 218 MT from Spain, 20 MT from Japan, 16,807 MT from Nicaragua valued at US$88.6 million, eight MT from NZ, five MT from Panama, and 64 MT from Uruguay.
Retail demand holds up despite inflation
Total consumption of beef in Mexico is expected to increase to meet the growing demand within the country. August 2023 food price inflation shows corn with the highest increase (10 per cent), followed by eggs (six per cent), pork (3.5 per cent), and beef (2.5 per cent). While inflation is projected to moderate, pork and beef consumption is anticipated to slightly increase for the remainder of 2023 and 2024.
The transgenic corn dispute between Mexico and the US could raise prices of key foods. Inflationary pressures persist, with an 8.2 per cent annual variation in the basic goods basket. Livestock products in the basic basket increased by 4.3 per cent year-over-year, but slightly decreased by 0.5 per cent compared to July.
Foodservice, hospitality sectors rebound
The hospitality sector in Mexico has fully recovered in 2023, with some segments experiencing double-digit growth. The industry is growing at a rate of over five per cent annually, generating over two million jobs. The hotel industry is witnessing a resurgence and the number of hotel rooms is expected to increase by five per cent. The restaurant industry, with two million businesses and 10 million jobs, is projected to generate higher sales for the remainder of 2023, with the fast-food segment maintaining a significant share.