Livestock Sector Grows Amid Challenges

Mexico’s livestock sector continues to expand, supplying 37% of the animal protein consumed by households, while facing mounting regulatory and sustainability pressures linked to deforestation, animal welfare and biosecurity. The cattle screwworm outbreak has halted live cattle exports to the United States, disrupting a key trade channel and forcing more than 1 million animals into domestic processing, reshaping supply dynamics in the beef industry.

Mexico’s livestock sector continues to expand and now accounts for a growing share of national diets, even as producers face mounting challenges from the cattle screwworm outbreak, deforestation linked to extensive ranching and the ongoing suspension of live cattle exports to the United States.

On the occasion of National Livestock Day, Julio Berdegué, Minister of Agriculture and Rural Development (SADER), highlighted that the country’s livestock sector continues to show sustained growth. He noted that the consumption of animal protein, comprising meat, eggs and milk, now represents 37% of the diet of Mexican households.

Berdegué recognized the sector as a pillar of the country’s economy, sanitary system and food sovereignty. “We have had many years of uninterrupted growth in production, while also trying to keep pace with extremely strong growth in animal protein consumption. That is very positive. It reflects a changing diet driven by greater wellbeing, higher incomes and lower poverty levels,” he emphasized.

The minister also called on members of the sector to work together to address key structural challenges, including closing the technological gap, strengthening sanitary control, modernizing the commercial supply chain, increasing value-added production and advancing sustainability. He stressed the need to modernize the commercial chain from ranches to slaughterhouses, reducing informality and noncompliance with regulations.

Moreover, Berdegué urged livestock producers to confront the sustainability challenge, noting that 152,000ha of forests and jungles are deforested annually for cattle production. He also called for progress on the approval of Mexico’s Animal Welfare Law. “These actions have no destination, no future. Society is paying more and more attention to these issues. It is not only about meat being of good quality and having a fair price, though that is very important,” he said.

According to the 2025–2030 Institutional Program of the National Forestry Commission (CONAFOR), land clearing for extensive livestock production accounts for 73% of forest cover loss in Mexico, followed by agricultural expansion with 22%. The agency warns that only 12,000-13,000ha per year receive official authorization for land-use change from the Ministry of Environment and Natural Resources (SEMARNAT), highlighting the scale of illegal deforestation.

Berdegué also congratulated livestock producers, state governments and the National Service for Agri-Food Health, Safety and Quality (SENASICA) for their joint efforts to combat the cattle screwworm outbreak. “You produce food sovereignty every day, through your effort, commitment and intelligence. This is important and even more valuable today, given the times the world is living through,” he said.

The event was attended by representatives from across the country’s livestock sector. José Alfredo Sainz, President, Regional Livestock Union of Sinaloa (UGRS) and the State Committee for Livestock Promotion and Protection of Sinaloa (CEFPP), stressed that coordination among producers, livestock organizations and authorities is essential to improve production conditions, strengthen animal health and create greater opportunities for livestock production in Sinaloa.

Homero García, President, National Confederation of Livestock Organizations (CNOG), which organized the event, acknowledged the commitment of the Mexican government to protecting the national cattle herd and responsibly addressing current challenges, including the cattle screwworm outbreak and the suspension of cattle exports to the United States.

So far, the cattle screwworm outbreak has been contained in the central and southern regions of the country, preventing its spread to northern states. However, exports to the United States have yet to resume. According to the latest report from SENASICA, dated March 4, 2026, the states with the highest number of active cases are Oaxaca, Veracruz and Chiapas, with 177, 176, and 126 cases, respectively. Nationwide, there are currently 995 active cases.

The cattle screwworm outbreak has also had a direct impact on the sector’s foreign trade. In 2024, the value of live cattle exports reached US$1.5 billion, but in 2025 shipments fell by 81%, dropping from 1.25 million head of cattle in the previous 12 months to just 240,000 animals. The impact has been particularly severe in the trade of calves, the category of cattle that the United States purchases in the largest volumes from Mexico, restricting one of the main sources of income for producers in northern states.

However, the closure of the US market has also triggered a shift within Mexico’s domestic production chain. More than 1 million head of cattle that were previously exported are now being processed domestically, increasing the supply available to the national meat industry. According to the US Department of Agriculture (USDA), this could increase cattle slaughter by 5% in 2026, reaching 7.2 million head, while boosting beef production by 6% to 2.3Mt. Domestic consumption is expected to grow at a similar rate as increased supply leads to more competitive prices.