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Export of Us Dairy to Mexico

In: Business and Management

Submitted By pavlina
Words 3151
Pages 13
There are many indicators that lead us to the conclusion that Mexico is a good potential market for U.S. Dairy products.
Population is growing, which will lead to a larger market. The growth of Real GDP and GDP per capita will allow the buyer to buy more which will increase the consumption of Dairy products per head; the consumption of more expensive Dairy products will increase as well due to urbanization.
The North American Free Trade Agreement (NAFTA) is one of the dominating factors of trade between U.S. and Mexico. Without having to pay tariffs, U.S. importers can afford to have prices for their products lower than other counties`.
Infrastructure, communications and government regulations also tolerate U.S. import of Dairy products to Mexico.
And last but not least, the existing gap between production and consumption of Dairy products in Mexico indicates the country`s urging need for imports.
U.S. Dairy
In 2010, U.S. exports of cheese, total whey products, lactose and other dairy products were valued at $3.71 billion, up 63 percent from the prior year. Export volume totaled 3.04 billion lbs. of U.S. milk solids, up 40 percent from 2009.
Mexico ($823 million export value in 2010), Southeast Asia ($693 million, up 141 percent over 2009) and Canada ($436 million) remained the largest destinations for U.S. dairy products.
In 2010, 12.8 percent of U.S. milk production (on a total-solids basis) was sold overseas.
Dairy Products: 1) Cheese
America is a nation of immigrants, and many of its traditions reflect its immigrant ancestry. One of those traditions is a love for cheese. In fact, when the first pilgrims arrived in America, they brought cheese with them on the boat. As more people arrived in America and began to settle the land, they found rich soil and lush grasses that reminded them of their European homelands. Soon, they began farming the land,

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