Wednesday, December 1, 2021

After Several Difficult Years, U.S. Pork Exports to Mexico Show Promise

Photo of pigs in a field

After Several Difficult Years, U.S. Pork Exports to Mexico Show Promise

Mexico is the third-largest pork importer in the world and traditionally the largest U.S. market for pork exports by volume. Over the past few years, shipments to this important market have faced headwinds. First, retaliatory tariffs related to Section 232 actions disadvantaged U.S. product. Then the coronavirus pandemic and a weak Mexican economy weighed on demand.

With retaliatory tariffs on pork resolved and economic recovery underway, U.S. pork shipments to Mexico recovered in 2021 and are expected to improve further next year. In the second quarter of 2021, Mexico was the top international destination for U.S. pork, with shipments reaching a record high in August and again in September. With Mexican exports elevated and high feed prices keeping production growth moderate, Mexico has looked to the United States for product and will likely continue to do so. This comes at a critical juncture for the U.S. pork industry as Chinese demand is expected to remain below the record levels of 2020, renewing emphasis on traditional markets.

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