Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   

Agricultural News


Mexican Cattle Industry Huge Supplier and Potentially Huge Competitor of U.S.

Fri, 09 Aug 2013 17:35:47 CDT

Mexican Cattle Industry Huge Supplier and Potentially Huge Competitor of U.S.



Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel probably knows more about the Mexican cattle market than almost anyone else in America. He says there have been many changes over the years in the relationship of the supply chain and the markets. Among those changes has been the fact that Mexico is now the Number 4 supplier of beef to the U.S.

“That has a multitude of impacts in Mexico, obviously. It was concurrent with the development of the cattle-feeding industry. It was concurrent with the development of relatively large-scale packing facilities in many cases. And those things depended on the development of roads and transportation infrastructure, processing facilities and, really, the biggest change in the beef industry per se that supported all of this was the conversion of this industry from carcass-based industry just a few short years ago predominantly, now a heavily boxed-beef industry. It happened in the U.S. many years ago. When you go from a carcass-based industry to a boxed-beef industry you open up a whole new set of potential value because now you can direct different parts of the animal to those markets where it has the highest value. And that’s what happened in Mexico. And one of the results of that is they are shipping a significant amount of beef to the U.S.”

Peel says the Mexicans now have a broad feeding industry of their own that is similar to that in the U.S., but with significant differences.

“They don’t necessarily feed cattle the same way in terms of the carcass quality because they have different preferences; it’s a different market. And, so, quality is in the eye of the beholder and so it’s not necessarily the exact same kind of meat. I distinguish between what I call Mexican-fed beef versus U.S. beef. They’re different products.   They do substitute for each other. They do compete in the marketplace to some extent, but they really are different products and so it’s a different market and something uniquely Mexican.”

Peel said that the Mexicans have never been happy with the prospect of the Country of Origin Labeling rule. He says for all practical purpose North America is really just one big market.

“We’re all in this together. It’s really just one market. These things divert attention, in my opinion, away from other issues that are probably more important, but, in the short run, they’re going to react to this. If we’re not willing to play nice, they will react to that.”


The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today








   
   











Derrell Peel talks about the impact of the Mexican cattle industry on the U.S.
right-click to download mp3

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Elizabeth Perkins Talks About Her Family's Results with Certified Angus Beef   Tue, 16 Jul 2019 17:31:53 CDT
  • Steer and Heifer Calves Were to Lightly Tested for an Accurate Trend Tuesday at OKC West Livestock Auction  Tue, 16 Jul 2019 17:10:43 CDT
  • Texas Rancher Kelley Sullivan Georgiades Calls on US House to Ratify USMCA for American Beef Producers  Tue, 16 Jul 2019 15:33:56 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Tuesday, July 16, 2019  Tue, 16 Jul 2019 15:22:15 CDT
  • Tuesday Market Wrap-Up with Justin Lewis  Tue, 16 Jul 2019 14:39:38 CDT
  • House Ag Subcommittee on Livestock Chairman Jim Costa Committed to Resolving Industry's Many Issues  Tue, 16 Jul 2019 14:23:31 CDT
  • House Ag Members Say Several Livestock Threats Being Addressed, But USMCA Approval Remains Vital  Tue, 16 Jul 2019 14:17:50 CDT
  • Tuesday Afternoon Market Wrap-Up with Carson Horn   Tue, 16 Jul 2019 14:14:50 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show AFR Insurance Stillwater Milling KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com


       
       
    © 2008-2019 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.