PRRS and PED in Mexico boost US exports?

An analyst from Rabobank indicates in conversation with Bloomberg that pig farmers in Mexico are struggling with outbreaks of Porcine Epidemic Diarrhea (PED) and Porcine Reproductive and Respiratory Syndrome (PRRS). The viruses would negatively affect animal numbers. In addition, livestock farmers in Mexico are also faced with high feed prices, which could make them decide to reduce the number of pigs. Lower domestic supply may increase the need to import pork.

Mexico is by far the most important export destination
Although Mexico has traditionally been an important destination for American pork, the country was overtaken by the Chinese in terms of volume in 2020. However, over the course of 2021, the tables have turned again and Mexico is once again the most important buyer for US pork exporters.

In January, the export volume to Mexico was already 36% higher than one year earlier. American exporters exported more than 87.000 tons of pork to Mexico in January this year, compared to almost 64.000 tons last year. At the same time, exports to China were significantly lower. In January, just over 35.000 tonnes of pork were exported to the country, which was more than 50% lower than the same month in 2021 when the volume was still 76.000 tonnes. A significant part of China's contraction has therefore been absorbed by the country's southern neighbors.