All three teams began in Monterrey with a briefing from U.S. government officials who presented economic data, explained export assistance programs, reviewed requirements for exporting agricultural products to Mexico and discussed border crossing issues that commonly arise.

While in Monterrey, the meat and livestock team toured and met with representatives of a hog slaughter facility, a meat processing plant, a meat distribution center, wholesale importers, meat distribution facilities at a central market and retail stores.

Soriana, one of the retail stores visited, is the second largest retail store chain in Mexico. Soriana is participating in the U.S. Meat Export Federation's (USMEF) "Mystery Shopper" program, an operational audit for the supermarket's meat department that runs from March to August. As part of the program, the stores receive a visit by a "mystery person" and a trained supervisor to evaluate the meat department on the following: 1) cleanliness of facilities and equipment, 2) appropriate dress and personal hygiene of employees, 3) attractive display of U.S. meat in the retail meat case, 4) appropriate use of U.S. meat point of sales materials, and 5) employees' knowledge of specific promotions.

While in Mexico City, the meat team received a briefing from U.S. government officials including the Senior Agricultural Attaché and the Director of the Agricultural Trade Office. Additional briefings were given by personnel from the USMEF who updated the delegation on various programs and promotions that included the Butcher Certification Program, seasonal promotions and chefs' promotion. USMEF in Mexico is building on the popularity of the pork checkoff funded "El cerdo es buenoTM" promotion campaign, which began last year in several major U.S. cities.

The U.S. has a close trading relationship with Mexico. Mexico is the second most important market for the U.S. following Canada. In 2004, the U.S. exported $112 billion of goods to Mexico and $190 billion of goods to Canada.

Nearly 85% of Mexico's exports are sent to the U.S. Currently, more than 85% of U.S. goods enter Mexico free of duties. By 2008, 100% of U.S. goods will enter Mexico duty-free. U.S. companies have the largest direct investment in Mexico of $94 billion followed by Spain at $15 billion. The economies of the U.S. and Mexico are truly linked.

The population of Mexico is approximately 103 million. Nearly 44% of the population is under the age of 20 years. Seventy-four percent of the people live in an urban area. Wealthy people make up 5% of the population, the middle class makes up 55% and poor people make up 40%.

The single case of BSE in the U.S. certainly impacted consumers in Mexico. Because the U.S. supply of beef was not available in Mexico, domestic beef prices skyrocketed about 30 -- 40% to consumers. The BSE situation created an opportunity for pork in Mexico. Mexican imports of pork will account for about 30% of pork consumption in Mexico.

The U.S. pork industry has experienced extraordinary growth in exports to Mexico. In 2004, one of every three tons of U.S. pork exported went to Mexico, the number one volume market. In 2004 Mexico imported 361,587 metric tons of pork and pork variety meat with a value of $566,521,000. The 2003 comparison was 219,034 metric tons valued at $295,565,000.

The Iowa Department of Economic Development (IDED) and the department's trade consultants in Mexico coordinated the mission, which was held in early April. Organizations participating on the meat team were the Iowa Beef Industry Council (IBIC), IPPA, Iowa Soybean Promotion Board (ISPB), and Iowa State University (ISU). Representing the IPPA were Gene Ver Steeg of Inwood, John Vossberg of Janesville, John Weber of Dysart, Scott Tapper of Webster City, and Rich Degner of the staff. Representing the IBIC were Dan Peterson of Muscatine, Terri Carstensen of Odebolt and Brian Waddingham of the staff. Mark Jackson of Rose Hill represented the ISPB. Representing ISU was Roxanne Clemens. Mark Fischer represented the IDED.