Tortilla theory: Why US pork sales to Mexico are falling
According to an US economist, Steve Meyer, the high
tortilla prices could be one reason why the United States is selling less pork
to Mexico this year.
Mexico is the US's no. 2 export market for hams and other hog cuts, but for
the first three months of this year compared with the same period last year pork
exports are down 20%.
Meyer, a livestock economist at Paragon Economics in Iowa said that
tortillas are a staple of the Mexican diet and they have risen in price by 40%
since late 2006, thus leaving less money for other food stuffs, namely
According to one Mexican official the higher-priced tortillas have
reduced the buying power of poorer families which has led to a fall in pork
Earlier this month the US Department of Agriculture (USDA) reduced its
forecast for 2007 US pork exports by 6%, Meyer believes this is more than likely
due to the lower sales in Mexico.
To comment, login here
Or register to be able to comment.