More Mexican steaks and other beef cuts are headed north of the border after the coronavirus outbreak has hobbled U.S. meat processing plants, potentially offsetting fears of shortages affecting businesses from fast-food chains to grocery stores but angering American ranchers.
Certified beef cattle are pictured at Rancho Estrada in the town of San Agustin, on the outskirts of Ciudad Juarez, Mexico May 13, 2020. REUTERS/Jose Luis Gonzalez
In a recipe for popular discontent, those shortages could cause meat supplies to fall by nearly a third by the end of this month, while prices jump by around 20%. In 2019, Mexico was the third-biggest foreign beef supplier to the United States, behind Australia and Canada, with exports reaching 232,000 tonnes. The United States accounted for about 86% of total Mexican beef exports, worth $1.3 billion.Mexico boasts nearly 30 federally regulated processing plants of varying sizes, able to process anywhere from 600 to 1,800 cows in an eight-hour shift, according to industry data.
“There are about a half-million cattle here that cannot get to slaughter,” said Bill Bullard, chief executive officer of the Ranchers Cattlemen Action Legal Fund United Stockgrowers of America.Ley, head of Mexico’s beef exporters association, is sensitive to the complaints. However, he noted Mexico also imports U.S. cuts in what he describes as a “very complementary” trade that he said was up 6% this year.
In the United States, Smithfield Foods, owned by China’s WH Group Ltd , as well as JBS and Tyson Foods have since April temporarily shut more than a dozen U.S. plants after thousands of workers contracted the virus.
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