How Coronavirus Increased Chinese Demand for Mexican Beef

Amidst the coronavirus outbreak, Mexico's top cattle association forecasted the increase of China's demand for Mexican steaks and other cuts of beef to more than 40 percent this year, according to an article by Reuters.

Among Mexico's beef importers, China represents only about four percent, but the Asian market in general has been a steady source of growth. In the past, most shipments just went to Hong Kong and the majority of Mexico's export, more than 80 percent, went to U.S. customers.

Along with the spread of coronavirus comes the concerns about the safety of the domestic food in China. The city of Wuhan is where the virus originated last year, particularly in a food market that was selling illegal wildlife in the capital of the Hubei province. Hubei is one of China's main food-producing hubs.

As authorities locked down the province in an effort to contain the epidemic, travel restrictions have controlled the movement of animals and feed, and reduced feed mills and slaughterhouses' output.

Rogelio Perez, head of AMEG which is Mexico's top cattle growers association, said China's domestic beef producers have been badly affected by the disruption caused by the flu-like coronavirus.

He added, China's demand would benefit SuKarne and Grupo Gusi, the two Mexican companies that have permits to export to China. In line with the growing demand, forty-two other Mexican cattle companies have applied and are awaiting approvals.

"It's a benefit for Mexico in the sense that this allows us to grow our exports faster," said Perez.

Aside from the deadly virus that affects human beings, the African swine fever has also prompted more consumers to eat more beef due to the reduced pork supplies causing prices to spike.

According to the U.S. Department of Agriculture, China by far is the world's top beef importer in 2020, with projected record of 2.9 million tonnes which is nearly double 2018's total.

Last week, Brazilian meat companies also forecasted that the coronavirus outbreak would help boost Chinese demand for their products.

China imported some 250,000 tonnes of Mexican beef last year, worth around $40 million, according to AMEG. Total Mexican beef exports in 2020 are projected at 390,000 tonnes, with a 25.8 percent increase from 2018's record, according to the USDA.

In the latest stats, the death toll from the coronavirus topped 1,000 on Monday, with more than 42,000 cases confirmed across the globe. According to a report by CBS News, the death toll has surpassed the record of deaths caused by the SARS virus outbreak in 2003.

In Monday, dozens of new cases were confirmed on a quarantined cruise ship Diamond Princess carrying 3,711 passengers and crew in Yokohama, Japan. There were 135 passengers already removed or soon to be removed from the ship to be observed in Japanese hospitals.

The figures include at least 23 American passengers, 11 of them were among the 65 new cases confirmed Monday. Most of the passengers and crew were still in isolation in the ship as ordered.