In a significant boost for the Canadian agricultural sector, a new trade agreement between JBS Canada and Costco Mexico is set to channel approximately 20,000 tonnes of beef from Alberta to retailers south of the border. The deal represents a strategic move to diversify Canada's beef export markets beyond the United States.
A Year in the Making
The partnership, which had been under development for roughly a year, was formally announced during a ribbon-cutting ceremony last month at a Costco location near Mexico City. The event was attended by notable figures, including Canada’s Agriculture and Agri-Food Minister, Heath MacDonald, underscoring the diplomatic importance of the trade relationship.
Diversifying Canadian Beef Exports
Albert Eringfeld, the Vice-President for Export Market Development at Canada Beef, highlighted the immense value of securing a retail giant like Costco. "Any new volume of beef to any export market is always a good thing for our beef industry," Eringfeld stated in an interview. He emphasized that this deal is "huge" for Canada.
Canada Beef played a facilitative role in the agreement, assisting with introductions and providing financial support for the promotion of the beef in Mexico. Eringfeld also noted a strategic advantage for Canadian producers, revealing that Mexican buyers are expressing dissatisfaction with "U.S. rhetoric" on trade and are actively seeking to diversify their sources of beef.
Growing Presence in Key Markets
Mexico is already the third-largest export market for Canadian beef, and this new deal solidifies that presence. However, Eringfeld pointed out that growth is also occurring in other regions that previously saw little Canadian product, such as Vietnam and the Philippines.
"We can see that some of the work we're doing is helping to diversify further into other markets," he said, indicating a positive trend for the industry's global reach.
Despite these promising developments in new markets, the United States remains the top importer of Canadian beef. Eringfeld acknowledged this, noting that the U.S. is a massive market that pays well, and with U.S. production down, its consumption of Canadian beef has increased.
The trade announcement was bolstered by high-level governmental talks. The day before the Costco event, Minister MacDonald met with Mexico’s Agriculture and Rural Development Secretary, Julio Berdegué, to discuss a bilateral action plan. These meetings, part of a "renewed momentum" in Canada-Mexico relations, built on recent visits by Prime Minister Mark Carney to Mexico and Mexican President Claudia Sheinbaum to Kananaskis for the G7 Leaders' Summit, opening new doors for cooperation in sustainable agribusiness.
