U.S. pork shipments to Mexico have been incredible, says Brett Stuart, economist and co-founder of Global AgriTrends. The U.S. had record tonnage to Mexico in 2021, up 27%. U.S. pork also boasted record value, shipping $1.6 billion in pork to Mexico last year.
“Mexico has been a great market and a great buyer. I think Mexico is going to keep buying,” Stuart says. “We’ll see where prices go, but U.S. pork has been very affordable and very competitive into Mexico.”
Consumers in Mexico love pork, but Stuart says they aren’t the only ones in that part of the world who are buying U.S. pork.
Where Will Growth Occur in 2022?
U.S. pork exports to Latin America, not just Mexico, have been impressive, too. Stuart analyzed shipments to the nine countries in the Caribbean and Central and South America that have free trade agreements (FTAs) with the U.S.
“The Dominican Republic-Central America FTA (CAFTA-DR) Agreement was signed in 2005, with 15-year phase-outs on the tariff rate quotas. So, we can do that math and say the quotas just came off in most of those CAFTA-DR Countries,” Stuart explains. “We can also look at Colombia, Chile and Panama, whom we have an agreement with. I look at those agreements and the U.S. pork exports to those nations grew.”
In 2020, the U.S. sent about $600 million to that group, Stuart says. That number jumped to nearly $900 million in 2021.
“We grew by nearly $300 million. And within maybe one more year, that might be a billion-dollar market,” he says.
The population of the Latin American FTA countries is around 128 million people, he adds. Mexico has about 131 million.
“Mexico is good – it’s a solid market. There’s been great investment by the U.S. pork industry in building that market,” Stuart says. “But I think the next real growth market for the U.S. is that group of Latin American FTAs. I think it’s going to be a billion-dollar market next year.”
More from Farm Journal’s PORK:
2021 Surprised Us, What’s Ahead for 2022 U.S. Pork Exports?
Two Ways Producers Can Strengthen Export Market Opportunities
U.S. Pork Producers Snag Record-High Export Value of $61 Per Hog in 2021
