Mexico: Livestock and Products Annual

Animal protein supplies remain tight in Mexico. Post forecasts beef production to grow to 2.19 million metric tons (MMT) carcass weight equivalent (CWE) in 2022, up 3.3 percent from 2021. The main drivers are solid exports, chiefly to the United States, and a recovery in domestic demand. Post also forecasts pork production to reach a record at nearly 1.54 MMT CWE in 2022, up 3.0 percent from 2021, reflecting continued strong exports to Asia, a recovery in domestic demand, and lower feed costs. In May and June 2021, retail beef and pork prices reached all-time highs. The Bank of Mexico projects that economic growth will reach a modest three percent in 2022, following a six-percent recovery in 2021 and a record decline of more than eight percent during the COVID-19 pandemic in 2020. Today, inflation concerns and overall uncertainty about livestock feed prices, foreign exchange rates, and a resurgence of coronavirus infections weigh on Mexico’s livestock outlook.