DENVER. Colo. The U.S.
Meat Export Federation (USMEF)
has moved quickly to advance a
six-point plan to address the halt
ing effects of the devalued peso on
U.S. meat exports to Mexico.
Since the peso’s devaluation on
December 20, USMEF estimates
Area Growers Sought For West Chester Market
WEST CHESTER (Chester
Co.) —Fanners looking for a new
opportunity to retail their products
this season are invited to attend an
exploratory meeting about a new
producer-only growers’ market in
West Chester.
The meeting at 10 a.m. on
Saturday, Feb. 25 will be held in
the Council Chambers of the West
Chester Municipal Building. The
Municipal Building is located at
401 E. Gay St., West Chester.
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Export Federation Responds To Peso Crisis
U.S. beef and pork exports to
Mexico have declined 70-80 per
cent.
The six-point plan, according to
USMEF President and CEO Philip
M. Seng, will accelerate the re
sumption of meat trade by helping
both U.S. suppliers and Mexican
Selling fresh produce and other
farm products directly to consum
ers at a new market is a golden
opportunity to either expand your
existing sales, or get started in
retail marketing. New growers’
markets in some neighboring
states have proven to be a wonder
ful bonanza to both new and exist
ing farmers.
This meeting will help set the
direction of such a market. Far
mers who raise fruits, vegetables.
buyers deal with higher produce
costs and credit shortages.
“The purpose of the MEF plan
is to get us through to the point
where the underlying market
fundamentals, which are still
strong in Mexico, can once again
take over,” said Seng. “The crisis
is real, but it’s only temporary.
herbs, eggs, plants, honey or any
other shelf-stable farm product
should attend. They will hear a
brief overview of the opportunity
and have ample time to discuss it
Details such as rules, products and
sale times will be covered.
West Chester has a vibrant
downtown where many customers
shop. Downtown West Chester is
within a 15-minutc driving dis-
LaficMttr Ftbruwy 18, 19i5-Ci3
The sooner we can get trade mov
ing and investor confidence back,
the sooner the crisis will pass.”
Seng stressed that the United
States and the international com
munity have a vested interest in
helping Mexico resolve its eco
nomic crisis as quickly as possi-
tance of a large population base.
City officials are very supportive
of a growers’ market operating in
downtown West Chester.
This marketing effort is being
sponsored by the Pennsylvania
Association for Sustainable Agri
culture (PASA). If you would like
additional information about the
meeting, contact Leon Weber at
(610) 683-1401.
DELAWARE
ble. "What we’re trying to do at
the industry level,” he said, "is to
speed the recovery and weather
the storm.”
Prior to the peso’s devaluation,
the exchange rate was 3.5 pesos to
the U.S. dollar. Since then, it has
fluctuated in a range of 3.4 - S.B
pesos to the U.S. dollar. The
Mexican government expects the
situation to stabilize this year at
4.5 pesos to the U.S. dollar.
The USMEF initiative includes
six distinct elements;
1. Securing credit for commer
cial transactions at reasonable
rates: Central to the USMEF plan
is a request for an additional $lOO
million in GSM-102 credit guar
antees. The official request was
made last week in a letter to
USDA’s Foreign Agricultural
Service. The GSM-102 program
offers an important level of pro
tection for banks in Mexico and
the United States to finance purchases of U.S.
red meat products during the economic crisis.
The prime loan rate in Mexico has more than
doubled since the devaluation, and Mexican
banks have sharply curtailed lending.
2. Promoting the GSM-102 program and
conducting the training necessary for its im
plementation; Only a handful of U.S. compan
ies and buyers in Mexico are familiar with the
GSM-102 program. Even fewer understand
how to use it USMEF is organizing seminars
to teach the U.S. and Mexican tade how to use
the program and how to obtain credit for com
mercial transactions.
3. Demonstrating new ways for the retail
sector to carry U.S. beef and make a profit;
USMEF is conducting special training for
Mexican retailers to demonstrate how to pur
chase U.S. beef and sustain profits, despite the
peso’s devaluation. These sessions demon
strate how to merchandise new, less expensive
cuts of U.S. beef; how to work with narrower
margins; and how to use proper handling tech
niques and innovative merchandising to offset
higher product costs.
4.Stepping up the exchange of critical mar
ket information; USMEF has expanded its in
formation network in Mexico and the U.S. to
more readily exchange market information,
monitor purchasing plans, and identify speci
fic problems as they arise. This information is
being shared with the U.S. embassy in Mexico
City, USDA, and the U.S. and Mexican trade.
5. Helping U.S. companies collect delin
quent payments; The cost of U.S. meat pro
ducts in Mexico increased as much as 50 per
cent overnight as a result of the peso’s sudden
and unexpected devaluation. The result has
been that a number of U.S. exporters have
been unable to collect the full amount due
them for transactions made prior to the peso’s
devaluation. To assist U.S. companies in this
position, USMEF is developing a procedural
guide for exporters considering relief through
legal channels.
6. Focusing on risk management tools to
lessen future risks: USMEF is developing a
curriculum that focuses on ways to help the
trade in Mexico manage the risks associated
with exchange-rate fluctuations. This aspect of
the plan is longer term, but will serve to create
a more stable and predictable trade environ
ment; the result of which will be more robust
trade.
“Beyond the current crisis, we see tremend
ous export opportunities for U.S. red meat pro
ducts in Mexico.” said Seng. “What’s import
ant now is that we do everything we can to sta
bilize the situation and get business back on
track as quickly as possible. We just need to
work through it.”
USMEF projects total U.S. red meat trade
with Mexico will more than double over the
next six years, surpassing the $1 billion marie
in the year 2001. This past year, total U.S. red
meat exports to Mexico (beef, pork, and lamb)
are projected to hit a record 240,000 metric
tons, valued at $423 million. Sales of U.S. beef
and beef variety meats (116,000 metric tons)
andU.S. pork and pork variety meats (118,000
metric tons) to Mexico in 1994 are estimated
to be up 45 percent and 28 percent respective
ly, over 1993.