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USA Cottonseed Meal Mexico Trip - June 2005
( complete report )

The Chihuahua/Cuauhtémoc region, 235 miles south of El Paso, Texas, has conveniently located rail lines for timely delivery of cottonseed meal to current feedlot and dairy customers. In the Team's assessment, the area offers great potential a greater number of and larger sizes of feedlot and dairy operations, given the climate, topography and location to both US and Mexican markets. The large feed cooperative in Chihuahua - Union Ganadera of Chihuahua - is planning to open a new 20,000 head feedlot in the near future. This could potentially double the amount of cottonseed meal they use from an estimated 8,000 metric tons per year to over 15,000 metric tons. The Cuauhtémoc region contains numerous small (1-5 railcars per month usage of CSM) feed mixing operations who supply the local dairies. An increase in the use of dried distillers grain (DDG) was a common theme among these feed mixers.

Culiacán, along the Pacific Coast of Mexico in the state of Sinaloa, also contains a number of feedlot and dairy operations. However, a lack of rail delivery points from the US makes bringing in competitively priced US cottonseed meal a challenge. The Team noted that an operation in this area that served as a central point for receiving bulk feed ingredients and distributing them to the local feed mixers and users had the potential for success.

The Team held a round-table session with six feed ingredient distributors from the Guadalajara area, representing well over 75,000 metric tons of feed demand. Rail and truck delivery to the area is adequate, and a number in the group expressed interest in specifics for feeding US cottonseed meal to shrimp.

Complete report - USA Cottonseed Meal Mexico - June 2005