Regardless of all the rhetoric about trade wars recently, business is still being done. Raul Garza, a procurement director for a large feedlot in Montemorelos, Mexico, said he has not stopped buying corn from the United States. In fact, he is buying more because of the low corn prices in the U.S.
Garza was part of a five-member Mexican Trade Team visiting the U.S. this month. The trade team, representing some of the largest grain importers from Mexico, was sponsored by the U.S. Grains Council. Team members included those from a variety of large beef and poultry operations in the Yucatan Peninsula and northern Mexico as well as buying groups, trading companies and feed mills.
The trade team began their trip on Oct. 18 with a visit to the Federal Grain Inspection Service office in Kansas City, Missouri. Their second stop was Nunemaker-Ross Farms and Feedlot outside Lawrence, Kansas.
Pat and Mary Ross gave the team a tour of their grain handling facilities and their feedlot. Pat Ross told the team they have 500 cattle in the feedlot now but can handle up to 800 head at one time. Ross markets 1,200 head on a yearly basis.
Ross said about half of the corn they raise is marketed through the cattle. The ration he uses is a combination of corn, corn silage, ground hay and brewers grain purchased from a brewery in Kansas City.
Garza said he uses a similar corn-based ration at his 62,000-head feedlot. Approximately 70 percent of the corn he uses is imported from the U.S. During all of the recent trade negotiations Garza did not stop importing U.S. corn. Last year he imported 14 metric tons of U.S. corn and probably will exceed that mark this year.
Cattle come in to his feedlot weighing around 440 pounds and finish on average at 992 pounds. All of the cattle in the feedlot are Zebu-type cattle brought up from southern Mexico to be finished in northern Mexico. Zebu cattle, a humped breed with drooping ears, are well suited for the harsh growing conditions in Mexico.
Because of their genetics, Garza said they don’t grow as big as the predominately black hided cattle in the Nunemaker-Ross Feedlot. Zebu cattle typically grade 5 to 6 percent Choice. Feedlots in the U.S. average 70 percent Choice on average.
Garza said they have their own packing plant where the cattle are processed and the meat is boxed for distribution in Mexico. All of the meat is used in country.
The trade team included Arturo Basulto, foreign trade manager, Inter Industrias del Sureste; Daniel Prieto, purchasing manager Imporagri; Deneb Galvan, business development manager Chapa Quiroga; and Arturo Gonzalez, purchasing manager Ganaderos Asociados de Queretaro. During their time in the U.S. the team will meet with companies involved in production, quality testing and exports of corn, sorghum and DDGS to Mexico.
Doug Rich can be reached at [email protected].
