Mexico’s appetite for animal protein seems endless. Consumption is going up, and availability seems to be widespread. Chicken meat is on the rise, particularly fresh chicken, not to mention the high egg consumption of the country. Domestic production has been constantly increasing, but also imports, to the point where Mexico is one of the largest importers in the world.
There are many reasons why a country would open up borders for trade. Some might be ideological or political, others could be because of the need for goods and services not produced within the country, or simply because of free trade.
Mexico started a free-trade policy 30 years ago, first with the NAFTA and now with the USMCA. But it is not only with the U.S. and Canada, the country trades with many, many other countries in Latin America, Europe and elsewhere. But this eagerness to trade does not stop there.
A couple of weeks ago I blogged about the Interoceanic Railroad, and how this infrastructure could facilitate trade. But other news shows up all the time. With the idea of controlling inflation, scarcity and high cost, Mexican authorities have just renewed the decree which allows tariff-free imports of chicken, pork, beef, turkey and eggs. Countries such as Brazil are delighted with the news because Mexico is already one of their main destinations and they could export those five proteins.
But also a few days ago, the Mexican government announced another measure that will facilitate animal protein trade between the U.S. and Mexico – the UCON password, a code that will carry railroad shipments across the border coming from trustful suppliers to the more than 400 TIF plants (processing plants with very strict safety measures). Shipments crossing the border were delayed by three to five hours for safety inspections. Now, with this code, the process will take no more than 45 minutes and will only involve a documentation check.
This new process has the benefit of the cold chain not being interrupted at the border, which protects animal protein safety; improves inspection service efficiency; decreases product contamination, which saves money and time for importers, and maintains product traceability.
Trade benefits also expand to Mexican animal protein producers in terms of exports, although the low exchange rate is not helping. But as everything else, there are always good and bad things. In any event, all of this means more, good quality animal protein availability.
What do you think?
