Devastating Drought and Violence Burying Mexican Cattle Industry

PUERTO VALLARTA, MEXICO – In a country dealing with cartel violence on a daily basis, the Mexican cattle industry is struggling under the weight of a historic drought as well.

The top beef producing state in Mexico is Jalisco, and producers have been challenged with finding feed and water for herds all while working to remain invisible to the cartel violence that recently claimed the lives of more than a dozen ranchers.

The drought is so bad, in fact, that herds in the state of Sonora are 70 percent smaller as free-range cattle have succumbed to the extreme drought and officials report the herd has fallen from over 1.1 million head to around 600,000.

This will surely affect not just supplies inside Mexico but also exports of beef. In 2019, Mexico was the third-largest supplier of beef to the United States, behind Australia and Canada, with exports reaching 232,000 metric tons. It’s an export market that Mexico relies on since the U.S. accounts for more than 85 percent of all Mexican exports, valued at $1.3 billion.

In an effort to keep a steady stream of cattle in the supply chain, replacing what local cattlemen can no longer provide, SuKarne – the largest beef exporter in Mexico – has been turning to producers in Belize to fill the void.

Nearly 450 head of cattle arrived last month from two producers in Belize, where SuKarne reportedly paid around a half-million dollars for the early July shipment. According to Ministry of Agriculture, Food Security, and Enterprise (MAFSE) sources, Belize has now exported more than 20,000 head of cattle to Mexico and Guatemala over the last eight months and stands to expand that in the coming months.

Still, the plight of the Mexican cattleman continues with no significant rainfall events in the long-term forecast and little optimism that their safety will improve.
(SOURCE: All Ag News)