With a total value of $28 billion, Mexico is projected to be the U.S.’ second largest destination for U.S. agricultural exports in fiscal year 2022 (October-September), after China. Between fiscal years 2018 and 2022, Mexico’s share of all U.S. agricultural exports rose from just under 13% to about 14% and is forecast to reach 15% in fiscal year 2023.
Mexico’s share of U.S. exports varies by product. On average, Mexico purchased $6.5 billion in U.S. grains and feeds per year from fiscal years 2018 to 2022, accounting for 18% of the largest export commodity group. Demand for grains and feed has been spurred by the expansion of Mexico’s cattle industry and growing consumption of animal products.
Between fiscal years 2018 and 2022, Mexico’s imports of livestock, poultry and dairy products represented an average of 18% of total U.S. exports and accounted for $6.3 billion in sales. In recent years, Mexico’s imports of U.S. dairy and poultry have been particularly strong, with demand for nonfat dry milk and chicken cuts driving Mexico’s import share as high as 24%.
Bilateral trade between Mexico and the U.S. is facilitated by relatively low transportation costs as well as trade advantages afforded by the United States-Mexico-Canada Agreement. These factors, as well as sustained demand, are expected to continue fueling growth in U.S. agricultural exports to Mexico through fiscal year 2023. — USDA Economic Research Service
