1

 

 

 

 

 

 

 

 

Summary 

The Mexican economy is highly dependent on trade with the United States. 

Trucks are the primary transportation mode used in the U.S.−Mexico trade by 

value, followed by ocean vessels and railroads. Mexican truck access to the United 

States is one of the major trade disputes between the United States and Mexico. 

The Mexican government objects to the U.S. position of not fully allowing Mexican 

trucks to have access to U.S. highways under the terms of the North American Free 

Trade Agreement (NAFTA). 

In early March of 2009, the cross-border trucking demonstration program that 

allowed additional Mexican trucks to operate beyond the commercial zones along 

the international border was terminated. The Mexican government retaliated by 

imposing import tariffs on 90 U.S. agricultural and industrial products with an 

estimated export value of $2.4 billion. The list of agricultural products did not 

include products that are important in the basic diet of Mexicans, like corn, rice, 

beans, dairy, or meat. Laredo and El Paso, TX, are the main entry points of U.S. 

goods to Mexico. Goods are shipped mostly by truck, with the exception of Eagle 

Pass, TX, where railroads hauled more than half of total shipments. 

The commodities included in this study (corn, sorghum, wheat, and soybeans) are 

mostly shipped overland (rail and truck), with the exception of wheat. In 2008, 

more than half of the soybean exports to Mexico were shipped by rail. Trucks 

gained market share in all the commodities considered in the study at the expense 

of a decline in ocean and rail shipments. Trucks allow a greater flexibility in 

movements due to a more extensive road network. Corn, wheat, and sorghum rail 

shipments declined due to higher rates rail rates caused by increases in fuel 

surcharges, and slowed rail traffic throughout the country caused by two major 

hurricanes—Gustav and Ike—in the New Orleans port area. High ocean rates 

caused by a shortage of ocean vessels also contributed to the increase in truck 

cargo. Ocean rates from the U.S. Gulf to Veracruz doubled from 2006 to 2007, 

reached a peak in the fourth quarter of 2007, and remained slightly higher in 2008 

than the previous year. 

 

U.S. Grain and Soybean Exports to Mexico 

A Modal Share Transportation Analysis, 2007-2008 

 By Delmy L. Salin 

January 2010 
2

Introduction

Transportation costs comprise 17 to 35 percent of the landed cost of shipping U.S. 

grain and oilseeds to Mexico, making information on the transportation system and 

patterns of trade of vital interest to grain exporters. Due to its location, Mexico is a 

unique market in that it is served by both overland—truck and rail—and maritime 

transportation. Overland transportation has several advantages over maritime 

shipping (Klindworth and Martinsen 1995): 

• The grain does not require transfer upon entry into the country, so there is less 

damage than to grain shipped by vessel, which has to be off-loaded. 

• Smaller lot sizes allow more specialized purchasing, with less variation in 

shipment quality. 

• Inventory costs are lower because smaller lots are purchased more frequently. 

• Supplies for some commodities are less costly because of improved access. 

Analysis reveals changes in competitiveness and relative efficiencies among the 

modes (Marathon, VanWechel, and Vachal 2006). This report analyzes the current 

United States–Mexico grain and soybean trade patterns. It includes a description of 

the modal shares of corn, sorghum, wheat, and soybeans. 

U.S. - Mexico Trade and Transportation 

The Mexican economy is highly dependent on trade with the United States. The 

United States bought about 82% of all Mexican exports in 2007 (U.S. State 

Department, 2009). Exports represent more than a quarter of Mexico’s Gross 

Domestic Product (GDP). Trucks were the primary transportation mode used in the 

U.S.−Mexico trade by value, accounting for 66 percent ($230 billion) of trade in 

2007, followed by ocean vessels and railroads (table 1). Laredo and El Paso, Texas, 

are the main entry points of U.S. goods to Mexico. Goods are shipped mostly by 

truck, with the exception of Eagle Pass, TX, where railroads hauled about 60 

percent of total shipments (table 2). Mexican truck access1

 to the United States 

 

1

In 2007, the United States created the Cross Border Truck Safety Inspection Program. This was a year-long pilot 

program that allowed a select group of Mexican trucking companies to make deliveries beyond the 20-25 mile 

commercial zones along the Southwest border, which is consistent with the U.S. trade obligations under the North 

American Free Trade Agreement (NAFTA) (DOT 2007). Prior to 1982, trucks from Mexico could drive anywhere in 

the United States. However, since 1982, trucks were not allowed to drive beyond the 20-25 mile commercial zone 

but could make deliveries in U.S. cities such as San Diego, El Paso, and Brownsville. There was an exception for 

Mexican trucking companies that were previously operating or grandfathered in (DOT 2007). Cargo destined 

beyond the commercial zone must be off-loaded and transferred to U.S. trucks (DOT 2007). In 2008, there were 

861 certified and grandfathered Mexican carriers with 1,749 trucks operating beyond the U.S.-Mexico border zone 

under separate permanent authority granted between 1982 and 1994 (Downey III, Kolbe, and Mead 2008; AMS 
3

continues to be one of the major trade disputes between the United States and 

Mexico. The Mexican government objects to the U.S. policy of not fully allowing 

Mexican trucks to have access to U.S. highways under the terms of the North 

American Free Trade Agreement (NAFTA) (U.S. State Department 2002). In early 

March of 2009, the cross-border trucking demonstration program that allowed 

additional Mexican trucks to operate beyond the commercial zones along the 

international border was terminated. By mid-March, the Mexican government 

responded to the U.S. ban of Mexican trucks from U.S. roads by imposing 10-45 

percent tariffs on 90 U.S. industrial and agricultural products,2

 such as Christmas 

trees, onions, pet food, cherries, potatoes, fruit and vegetable juices, soy sauce, 

wine, mineral water, shampoos, and coffee makers, with an estimated export value 

of $2.4 billion. Fresh grapes faced the highest tariff of 45 percent. The 36 

agricultural commodities included in the list were valued at approximately $864 

million in 2008 (FAS 2009b). These import duties excluded rice, corn, wheat, 

sorghum, meats, dairy, and seafood products (Mexico Official Gazette 2009). 

Table 1 – Value of total U.S. merchandise shipments with Mexico 

by mode of transportation, 2007 

(Millions of current U.S. dollars) 

Mode of 

Transport 

Total Exports to Mexico Imports to Mexico 

(US$ 

Millions) 

Percent 

share 

(US$ 

Millions) 

Percent 

share 

(US$ 

Millions) 

Percent 

share 

Truck 230,084 66 93,047 68 137,037 65 

Rail 46,400 13 19,340 14 27,060 13 

Pipeline 956 0 787 1 169 0 

Other and unknown total1 8,277 2 5,581 4 2,696 1 

Foreign Trade Zones 

(FTZs)2 751 0 NA NA 751 0 

Mail 2.9 0 3 0 0 0 

Total by land 286,472 82 118,758 87 167,713 80 

Air 11,508 3 6,824 5 4,684 2 

Vessel 49,360 14 10,959 8 38,401.4 18 

Total by air and vessel 60,869 18 17,783 13 43,086 20 

Total, all modes 347,340 100 136,541 100 210,799 100 

NA = Not applicable 

1

”Other” includes other modes, for example flyaway aircraft and vessels moving under their own power, where the 

conveyance itself is the shipment. 

2

There are no exports from Foreign Trade Zones 

Source: Beningo and Mohamed, U.S. Department of Transportation, 2009 

 2009b). By August 2009, there were 7,134 Mexican carriers with 29,681 trucks operating within the U.S. 

commercial zone (DOT 209). 

2 In 2001 a ruling by a NAFTA dispute-settlement panel gave Mexico the right to retaliate against U.S. products 

entering Mexico, citing that the blanket exclusion of Mexican trucking firms violated U.S. obligations under the 

NAFTA (DOT 2007).
4

Table 2 – Top U.S. land ports by value of U.S.-Mexico land mode trade, 2007 

(Millions of current U.S. dollars)

Ranked 

by all 

land 

modes 

Port 

Total 

land 

modes 

Truck Rail Other 

Truck 

as % 

of total 

land 

modes 

Rail as 

% of 

total 

land 

modes 

1 Laredo, TX 110,355 82,638 27,317 401 74.9 24.8 

2 El Paso, TX 49,054 43,479 5,516 418 88.6 10.5 

3 Otay Mesa, CA 30,707 30,697 0 10 100.0 0.0 

4 Hidalgo, TX 21,859 21,688 1 170 99.2 0.0 

5 Nogales, AZ 18,164 13,253 4,829 82 73.0 26.6 

6 Brownsville, TX 13,208 11,551 1,353 304 87.4 10.2 

7 Eagle Pass, TX 12,025 4,831 7,190 4 40.2 59.8 

8 Calexico-East, CA 11,943 11,433 264 246 95.7 2.2 

9 Del Rio, TX 3,220 3,220 0 <1 100.0 0.0 

10 Santa Teresa, NM 1,390 1,390 0 <1 100.0 0.0 

Notes: NAFTA = North American Free Trade Agreement. “Other” includes pipeline and mail. Numbers may not 

add to totals due to rounding. 

Source: Beningo and Mohamed, U.S. Department of Transportation, 2009 

Methodology and Sources of Data 

Modal Share 

Modal share is the portion of tonnages of grain moved by each mode of transport.

Rail, truck, and ocean shares are presented as percentages (Marathon, VanWechel, 

and Vachal 2006). Transport modes are determined from major export terminals to 

Mexico. The reported modal shares are based on total quantities exported to 

Mexico. 

Total Exports 

Total grain and soybean export data were obtained from USDA’s Global Agricultural 

Trade System (GATS) Foreign Trade Statistics, published by USDA’s Foreign 

Agricultural Service (FAS). The data on the FAS website come from the U.S. 

Department of Commerce’s Foreign Trade Statistics, a publication of the U.S. 

Census Bureau. 

Ocean Exports 

Ocean tonnages represent grain inspected for export by the USDA Grain Inspection, 

Packers and Stockyards Administration (GIPSA). 
5

Rail Exports 

Rail totals were estimated by collecting primary from data from Burlington Northern 

Santa Fe (BNSF) Railway, Union Pacific (UP) Railroad, and Kansas City Southern 

(KCS) Railway Company. 

Model for Estimating Modal Tonnages and Share 

(1) Total Exports from Department of Commerce, U.S. Census Bureau, Foreign 

Trade Statistics. 

(2) Truck Exports = Total Exports - (Ocean Exports + Rail Exports). 

United States–Mexico Agricultural Trade 

Mexico remains the second largest destination, after Canada, of U.S. agricultural 

exports, estimated in 2008 at $15.6 billion due largely to increased prices and 

volumes for grains, soybeans, and soybean oil, and rising cotton, animal fat, red 

meat, and dairy products sales (ERS 2008). U.S. agricultural exports to Mexico are 

forecast to decrease to $14.2 billion in 2009 (ERS 2009). Bulk commodities 

accounted for 67 percent of the total 27.8 million metric tons (mmt) of U.S. 

agricultural products exported to Mexico in 2008, and coarse grains about 39 

percent of the bulk agricultural shipments (FAS 2009a). Soybeans and wheat 

accounted for 13 and 10 percent of the 17.9 mmt of bulk exports, respectively. 

The Caribbean Gulf ports are the main entry points of bulk grain and soybean 

shipments to Mexico. Most of these originate in the United States—76 percent in 

2008 (SCT 2008). Veracruz is the top receiving port, 49 percent of the total, 

followed by Progreso, Coatzacoalcos, Tuxpan, and Altamira. The Pacific Ocean 

ports received 24 percent of shipments. They consisted of safflower imports from 

Argentina through the port of Guaymas, Sonora, followed by canola and wheat 

imports from Canada through the ports of Manzanillo, Colimas, and Lázaro 

Cardenas, respectively (SCT 2008). The port of Manzanillo is the top port for 

containers, with 46 percent of the total, followed by Veracruz (21 percent), and 

Lázaro Cardenas (12 percent) (SCT 2008). 

Corn Exports to Mexico 

Mexico is the fifth largest world corn producer, after the United States, China, the 

European Union (EU-27), and Brazil. However, it is the world’s second largest corn 

importer, after Japan. Mexico produces different varieties of corn, with white and 

yellow corn varieties being the most important and accounting for 92.9 and 6.9 

percent of Mexican corn production in 2005 (SAGARPA/SIAP 2007). The largest 

white corn producing states are Sinaloa, Jalisco, Michoacán, Chiapas, Guerrero, 

Estado de México, Guanajuato, Veracruz, and Puebla. Yellow corn production is 

concentrated in the states of Chihuahua, Jalisco, Tamaulipas, and Chiapas. Mexico 

processes much of its production of white corn into human food products, such as 
6

flour, traditional tortillas in rural areas, and other by-products3. In 2006, about 83 

percent of white corn was used for human consumption and 17 percent for animal 

feed. About 80 percent of yellow corn was used for animal feed and the remainder 

was made into corn starch, cereals and snacks. Approximately 23 percent of 

Mexico’s corn is imported, almost all of it from the United States. It consists of 

yellow corn for livestock feed to support increased meat production and a small 

amount of white corn for human consumption (SAGARPA/SIAP 2007). During 

2008, United States corn exports to Mexico increased 12 percent from the previous 

year, totaling 9.1 mmt, due to the elimination of corn Tariffs Rates Quotas (TRQs). 

Corn Modal Share 

Most corn shipped from major export facilities to Mexico is moved by rail (tables 3 

and 4, and figure 1). From 2007–2008, rail hauled 56 percent, ocean vessels 

moved 37 percent of U.S. corn to Mexico, and trucks carried 7 percent. In 2008, 

rail corn shipments declined due to higher rail rates caused by increases in fuel 

surcharges (table 5) (AMS 2009). During September, railroads also dealt with the 

impact of two major hurricanes in the New Orleans port area, Gustav and Ike. 

Traffic was slowed throughout the country because the two hurricanes hit grain 

export destinations in the Gulf of Mexico region (AMS 2009). Over the last 2 years, 

trucks have gained market share at the expense of rail carriers. 

Texas is the major entry point for rail corn shipments to Mexico, via Brownsville, 

Laredo, El Paso, and Eagle Pass. The Port of Veracruz is the major entry point for 

ocean vessels (figures 2 and 3, and table 6). All U.S. corn shipped by ocean 

originates from ports along the U.S. Gulf4

 (table 4 and figure 4). About 40 percent 

of the corn shipped to Mexico by ocean travels from North Texas; another 31 

percent moves down the Mississippi River. Figure 4 shows that 43 percent of U.S. 

corn exports occurred during the last quarter of the year and reached a peak during 

December (about 19 percent). However, this trend changed in 2008 due to the 

elimination of corn TRQs. U.S. corn increased market share by 11 percent from a 

year earlier. Shipments were spread out throughout the year, reaching a peak in 

the 1st quarter (about 28 percent). Mexico imported almost all of its corn from the 

United States, with a small amount coming from Argentina and Brazil. 

Table 3 – Tonnages (MT) and modal share for U.S. corn exports to Mexico 

Year/type of 

movement 

Mode of Transport Total U.S. 

exports to 

Mexico 

Ocean (U.S. Gulf) Rail Truck* 

Quantity Percent Quantity Percent Quantity Percent 

2007 3,041,478 37 5,112,052 62 50,162 1 8,203,692 

2008 3,429,594 37 4,484,686 49 1,238,250 14 9,152,530 

Average 07-08 3,235,536 37 4,798,369 56 644,206 7 8,678,111

*Residual 

Source: USDA/GIPSA, Union Pacific Railroad, BNSF Railway, Kansas City Southern Railway, and Dept. of 

Commerce/U.S. Census Bureau 

 

3

 Atoles, tamales, pozole, etc. 

4

 U.S. Gulf includes East Gulf, Mississippi River, North Texas, and South Texas. 
7

Figure 1 – U.S. corn exports to Mexico by mode

Source: USDA/GIPSA, Union Pacific Railroad, BNSF Railway, Kansas City Southern Railway, and 

Dept. of Commerce/U.S. Census Bureau

Table 4 – U.S. corn exports to Mexico by route, 2007-2008 (MT)

Route 2007 2008 

Maritime:

U.S. Gulf East Gulf 0 55,407 

Mississippi River 2,101,086 2,376,181 

North Texas 924,223 832,589 

South Texas 16,169 165,417 

Total 3,041,478 3,429,594 

Maritime as % of total exports 37 37 

Overland 5,162,214 63 

Overland as % of total exports 63 63 

Total U.S. Exports 8,203,692 9,152,530 

Source: Dept. of Commerce/U.S. Census Bureau/Foreign Trade Statistics 

and USDA/GIPSA 

0

10

20

30

40

50

60

70

2007 2008

Percentage

Ocean Rail Truck
8

Table 5 – Ocean and rail rates per metric ton (mt) from selected U.S. rail routes 

and the U.S. Gulf to Mexico, 2006-2008 

Quarter 

U.S. Gulf to Veracruz Corn Sorghum Wheat Soybeans 

Ocean bulk rates* Rail rates (tariff + fuel surcharge)** 

-- US$/mt -- 

2006

1st quarter 7.45 n.a. n.a. n.a. n.a. 

2nd quarter 8.98 n.a. n.a. n.a. n.a. 

3rd quarter 11.66 n.a. n.a. n.a. n.a. 

4th quarter 12.99 n.a. n.a. n.a. n.a. 

Average 2006 10.27 n.a. n.a. n.a. n.a.

2007 

1st quarter 14.31 59.76 50.19 47.46 61.19 

2nd quarter 18.81 60.74 51.51 48.75 62.85 

3rd quarter 23.04 61.78 53.29 51.11 63.59 

4th quarter 30.03 65.75 56.16 53.62 69.00 

Average 2007 21.54 62.01 52.78 50.23 64.16 

2008 

1st quarter 22.84 67.76 57.57 59.56 70.66 

2nd quarter 27.41 70.10 59.34 56.86 72.98 

3rd quarter 28.38 73.81 62.67 61.30 76.63 

4th quarter 11.58 71.74 61.71 59.26 73.86 

Average 2008 22.55 70.85 60.32 59.24 73.53 

n.a. = not available 

*Ocean rates from 2006 to March 2008 are estimated on the data obtained from the Baltic Exchange; from 

April-December 2008 are from O’Neil Commodity Consulting 

**www.bnsf.com, www.uprr.com, www.kcsouthern.com 
9

Table 6 – U.S. grain and soybean exports to Mexico by port, 2008

Port 

Corn Sorghum Soybean Wheat 

Percentage share 

Veracruz 57.98 68.29 67.99 72.95 

Tuxpan 8.72 0.86 - 9.94 

Progreso 21.52 21.43 30.42 9.63 

Altamira 1.09 - - - 

Coatzacoalcos 10.70 9.42 1.60 7.48 

Total 100 100 100 100 

Source: Secretaría de Comunicationes y Transporte, Mexico

Figure 2 – Major rail entry points to Mexico 
10

Figure 3 – Major origin-destination shipments of U.S. grains 

to Mexico by ocean, 2008

Figure 4 – Mexico’s average monthly corn imports 

*The United States share of total Mexican corn imports is almost 100 percent 

Source: SIAP/SAGARPA 

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Total corn imports 03-07 0.6 3.9 10.1 9.6 8.2 5.8 4.4 6.0 8.7 10.8 13.2 18.6

U.S. corn 03-07* 0.6 3.9 10.1 9.6 8.2 5.8 4.4 6.0 8.7 10.8 13.2 18.6

U.S. corn 2008 9.4 9.6 8.7 9.7 8.5 7.7 5.7 8.8 8.2 9.2 7.9 6.5 Percentage
11

Sorghum Exports to Mexico 

Mexico is the world’s fourth largest sorghum producer after the United States, 

Nigeria, and India, and the third largest world consumer after Nigeria and India. 

Mexico sorghum production is not enough to satisfy its demand; consequently 

Mexico imported about 27 percent of its total sorghum consumption last year. 

Mexico imported 1.5 mmt of sorghum from the United States during 2008, almost a 

13 percent decline compared with 2007 (FAS 2009a). Mexico sorghum imports 

dropped because EU-27 purchases of U.S. sorghum pushed prices higher relative to 

corn (Allen 2008). Sorghum is used exclusively for animal feed in Mexico (Adcock, 

Rosson, and Varela 2007). Mexican feeders were accustomed to feeding sorghum 

because corn imports were limited by Mexican government policies (Hoffman et al 

2007). The top Mexican destinations for U.S. Sorghum in 2004 were Puebla, 

Yucatan, Jalisco, Veracruz, San Luis Potosi, and Nuevo Leon (Adcock, Rosson, and 

Varela 2007). 

Sorghum Modal Share 

The United States supplies almost all sorghum to Mexico. Over the last 2 years, 

truck transportation gained market share over ocean and rail sorghum shipments. 

On average, 38 percent of U.S. sorghum was exported to Mexico by rail, 37 percent 

by ocean, and 35 percent by truck. U.S. Sorghum was exported to Mexico by 

ocean through the U.S. Gulf, mostly from North Texas, the Mississippi River, and 

South Texas (tables 7 and 8, and figure 5). The port of Veracruz is the major 

ocean point of entry. However, ocean and rail are losing market share to trucks 

due the lack of rail service in the U.S.-Mexico border region, high rail tariff rates 

and fuel surcharges (table 5), as well as the location of the major production areas 

along the border in the Rio Grande Valley of Texas. Trucks compete with rail for 

shipments between 300 and 600 miles (AMS 1998). However, according to the 

Association of American Railroads (AAR), since 2003 Class I railroads’ average 

length of grain haul is more than 900 miles; sorghum averages 820 miles (AMS 

2007). There is a lack of rail service in the border region, especially in areas 

located below the rail average-haul, length forcing shippers to use trucks (Salin 

2008). Trucks are the mode of choice when freight shipments weigh less than 

50,000 pounds and travel fewer than 300 miles (AMS 1998). 

The top rail destinations for U.S. sorghum exports to Mexico in 2005 were Nuevo 

Leon, Veracruz, Estado de Mexico, Jalisco, and Guanajuato (Adcock, Rosson, and 

Varela 2007). Texas (Laredo and El Paso) and Arizona (Santa Cruz) are the main 

rail entry points (figure 2). The ports of Veracruz and Progreso are the major entry 

points by vessel (table 6 and figure 3). Before the elimination of the corn TRQs, 

half of the year’s sorghum exports to Mexico occurred between January and May, 

reaching a peak in April (figure 6). This trend changed in 2008, when more than 

half of U.S. sorghum exports occurred during the second half of the year, reaching 

its peak in October (20 percent). 
12

Table 7 – Tonnages (MT) and modal share for U.S. sorghum exports to Mexico 

Year/type of 

movement 

Mode of Transport Total U.S. 

exports to 

Mexico 

Ocean (U.S. Gulf) Rail Truck* 

Quantity Percent Quantity Percent Quantity Percent 

2007 694,599 39 723,074 41 356,949 20 1,774,622 

2008 540,709 35 539,889 35 468,174 20 7,548,772 

Average 07-08 617,654 37 631,482 38 412,562 25 1,661,697

*Residual 

Source: USDA/GIPSA, Union Pacific Railroad, BNSF Railway, Kansas City Southern Railway, and Dept. of 

Commerce/U.S. Census Bureau 

Table 8 – U.S. sorghum exports to Mexico by route, 2007-2008 (MT)

Route 2007 2008 

Maritime:

U.S. Gulf East Gulf 0 0 

Mississippi River 47,973 168,738 

North Texas 562,059 220,540 

South Texas 84,567 151,431 

Total 694,599 540,709 

Maritime as % of total exports 39 35 

Overland 1,080,023 1,008,063 

Overland as % of total exports 61 65 

Total U.S. Exports 1,774,622 1,548,772 

Source: Dept. of Commerce/U.S. Census Bureau/Foreign Trade Statistics 

and USDA/GIPSA 
13

Figure 5 – U.S. sorghum exports to Mexico by mode 

Source: USDA/GIPSA, Union Pacific Railroad, BNSF Railway, Kansas City Southern Railway, and Dept. of 

Commerce/U.S. Census Bureau 

Figure 6 – Mexico’s average monthly sorghum imports 

*The United States share of total Mexican sorghum imports is almost 100 percent 

Source: SIAP/SAGARPA

0

5

10

15

20

25

30

35

40

45

2007 2008

Percentage

Ocean Rail Truck

0.0

5.0

10.0

15.0

20.0

25.0

Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Total sorghum imports 03-07 8.9 9.9 10.4 11.4 9.5 6.6 8.6 9.0 8.3 6.5 5.6 5.3

U.S. sorghum 03-07* 8.9 9.9 10.3 11.3 9.3 6.6 8.6 9.0 8.3 6.5 5.6 5.3

U.S. sorghum 2008 3.0 2.6 3.1 5.8 6.7 4.6 6.1 14.8 14.5 20.2 7.4 11.1 Percentage
14

Wheat Exports to Mexico 

Mexico grows some wheat, but it relies on imports to satisfy its demand. The United 

States and Canada are its major suppliers (figure 7). In 2008, the United States 

accounted for 75 percent of Mexican wheat imports (SAGARPA/SIAP 2009). The 

U.S. share of Mexico’s wheat market varies from year to year because of Canadian 

competition (figures 7 and 8), which is based on quality and price. Wheat exports 

consist mostly of hard red winter (HRW) wheat due to the proximity of the HRWwheat-growing areas in the southern Plains to the Mexican border. The wheat is 

milled to make bread, cookies, cakes, and prepared flours (Ag-Canada 2006). As a 

result of NAFTA, there are no tariffs on U.S. and Canadian wheat exports to Mexico. 

Wheat exports to Mexico increased 11 percent in 2008 to 2.8 mmt from 2.5 mmt in 

2007. They are used almost entirely for human consumption (Adcock, Rosson, and 

Varela 2007). 

Wheat Modal Share 

Since 2007, overland transportation was the major route for shipping U.S. wheat to 

Mexico (tables 9 and 10). Truck has gained a greater share of the market, mostly 

due to a decline in rail shipments (figure 9). During this period, ocean vessels 

transported 46 percent, rail hauled 40 percent and truck moved 15 percent of U.S. 

wheat exports to Mexico. Rail wheat shipments to Mexico declined due to high rail 

rates and the two hurricanes that hit grain export destinations in the Gulf of Mexico 

(AMS 2009). Railroads haul 60 percent of U.S. wheat to export markets (Marathon, 

VanWechel, and Vachal 2006). Estado de Mexico was the major rail destination of 

U.S. wheat exports by rail, followed by the D.F., Nuevo Leon, Jalisco, Puebla, 

Coahuila, Guanajuato, and Queretaro (Adcock, Rosson, and Varela 2007). Texas 

(Laredo, El Paso, Eagle Pass, and Brownsville) and Santa Cruz, Arizona, were the 

major entry points of wheat by rail (figure 2). 

In 2008, about 96 percent of U.S. wheat shipped by ocean originated in the Gulf, 

mostly from the Mississippi River and North Texas regions (table 10). The ports of 

Veracruz, Tuxpan, and Progreso were the major points of entry into Mexico (figure 

3 and table 6). Figure 7 shows that 53 percent of Mexico’s wheat imports occurred 

during the second half of the year, reaching a peak from November through 

December. In 2008, the majority of U.S. wheat exports to Mexico occurred during 

the third quarter of the year, reaching a peak in August (11 percent). 
15

Figure 7 – Mexico’s average monthly wheat and “morcajo” imports 

“morcajo”: Mix of cereals (wheat and rye) to produce grey and dark flour 

Source: SIAP/SAGARPA

Figure 8 – Mexico wheat and “morcajo” 3 year average* monthly imports 

*Average: 2006-2008; "morcajo": Mix of cereals (wheat and rye) to produce grey and dark flour 

Source: SIAP/SAGARPA 

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Total wheat imports 04-08 8.2 7.8 9.2 7.8 7.3 6.6 9.0 9.2 8.7 7.8 9.2 9.3

U.S. wheat 04-08 6.5 6.9 7.4 6.3 5.0 4.6 6.8 7.8 6.8 6.1 5.7 5.8

Canadian wheat 04-08 1.7 0.8 1.8 1.5 2.3 2.1 2.1 1.3 1.9 1.8 3.5 3.4 Percentage

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Thousand metric ton

Canadian wheat U.S. wheat

Total Mexican wheat imports
16

Table 9 – Tonnages (MT) and modal share for U.S. wheat exports to Mexico 

Year/type of 

movement 

Mode of Transport Total U.S. 

exports to 

Mexico 

Ocean (U.S. Gulf) Rail Truck* 

Quantity Percent Quantity Percent Quantity Percent 

2007 1,165,083 46 1,047,907 42 303,509 12 2,516,499 

2008 1,259,417 45 1,063,986 38 480,962 17 2,804,365 

Average 07-08 1,212,250 46 1,055,947 40 392,235 15 2,660,432

*Residual 

Source: USDA/GIPSA, Union Pacific Railroad, BNSF Railway, Kansas City Southern Railway, and Dept. of 

Commerce/U.S. Census Bureau 

Figure 9 – U.S. wheat exports to Mexico by mode 

Source: USDA/GIPSA, Union Pacific Railroad, BNSF Railway, Kansas City Southern Railway, 

and Dept. of Commerce/U.S. Census Bureau

0

10

20

30

40

50

2007 2008

Percentage

Ocean Rail Truck
17

Table 10 – U.S. wheat exports to Mexico by route, 2007-2008 (MT)

Route 2007 2008 

Maritime:

U.S. Gulf East Gulf 0 25,844 

Mississippi River 675,232 612,086 

North Texas 438,913 465,839 

South Texas 30,695 103,795 

Subtotal 1,144,840 1,207,564 

Lakes Toledo 0 0 

Duluth-Sup 0 0 

Chicago 20,243 51,853 

Subtotal 20,243 51,853 

Atlantic North Atlantic 0 0 

South Atlantic 0 0 

Subtotal 0 0 

Total 1,165,083 1,259,417 

Maritime as % of total exports 46 45 

Overland 1,351,416 1,544,948 

Overland as % of total exports 54 55 

Total U.S. Exports 2,516,499 2,804,365 

Source: Dept. of Commerce/U.S. Census Bureau/Foreign Trade Statistics 

and USDA/GIPSA 

 

Soybean Exports to Mexico 

Mexico is the world’s fourth largest soybean importer, after China, the EU-27, and 

Japan. Mexican domestic production has almost been displaced by U.S. imports 

because of reform in Mexico’s domestic crop support program and the elimination of 

soybean tariffs due to NAFTA, and because of improvements in rail transportation 

links at the border (Ash, Livezey, and Dohlman 2006). In addition, strong income 

growth among Mexican consumers has boosted consumption of meat and vegetable 

oils and has increased the demand for soybeans as a feed ingredient. However, 

U.S. soybean exports to Mexico decreased 3 percent from 2007 to 2008, to 3.5 

mmt, due to the slowdown in the Mexican economy and the international financial 

crisis (FAS 2008; 2009a). 

Soybeans are crushed into meal and oil in Mexico. Major soybean crushing facilities 

are located in Merida, Yucatan, Monterrey, Nuevo Leon, Guadalajara, Jalisco, 

northern Mexico City, Guanajuato, and near the ports of Veracruz and 
18

Coatzacoalcos (Adcock, Rosson, and Varela 2007). Soybean meal is an important 

protein feed for livestock, dairy, poultry, and aquaculture. Small portions are used 

as a baking ingredient and as meat substitutes (Ash, Livezey, and Dohlman 2006, 

and American Soybean Association 2000). 

Soybean Modal Share 

Railroads are the largest transport mode for shipping soybeans to Mexico (tables 11 

and 12, and figure 10), especially to the North and Central regions (Gonzalez Diaz 

2009). From 2007 to 2008, rail hauled 61 percent of U.S. soybean exports to 

Mexico; ocean and truck moved 31 and 8 percent, respectively. In the last 2 years, 

railroad and trucks have gained market share at the expense of ocean carriers. 

Ocean rates increased from $10.27/mt in 2006 to $21.54 in 2007, and to $22.55 in 

2008, reaching a peak of $30.03/mt in the fourth quarter of 2007 due to a shortage 

of vessels (table 5) (AMS 2007 and O'Neil Commodity Consulting 2008). Increased 

global demand for bulk shipments and congestion off the ports of Australia 

increased vessel waiting times, resulting in a reduction of vessel availability to 

move bulk commodities in the rest of the world (AMS 2007 and O'Neil Commodity 

Consulting 2008). Rates began to drop during the last quarter of 2008 (table 5). 

The Texas soybean crop was transported by truck to the northern states of 

Tamaulipas and Nuevo Leon (Gonzalez Diaz 2009). The ports of Veracruz, Tuxpan, 

and Progreso were the major ocean points of entry of soybeans into Mexico (figure 

3 and table 6). Almost all soybean exports originated in the Gulf, having been 

shipped down the Mississippi River (table 12). Texas (Brownsville, Eagle Pass, El 

Paso, and Laredo) was the major entry point for rail shipments (figure 2). Major 

rail destinations were Guanajuato, Nuevo Leon, Hidalgo, Tamaulipas, Jalisco, and 

San Luis Potosi (Adcock, Rosson, and Varela 2007). Figure 11 shows that U.S. 

soybean exports are spread throughout the year, reaching peaks in April and 

October. 

Table 11 – Tonnages (MT) and modal share for U.S. soybean exports to Mexico 

Year/type of 

movement 

Mode of Transport Total U.S. 

exports to 

Mexico 

Ocean (U.S. Gulf) Rail Truck* 

Quantity Percent Quantity Percent Quantity Percent 

2007 1,433,189 39 2,021,928 55 208,017 6 3,663,134 

2008 1,094,491 31 2,161,948 61 293,615 8 3,550,054 

Average 07-08 1,263,840 35 2,091,938 58 250,816 7 3,606,594

*Residual 

Source: USDA/GIPSA, Union Pacific Railroad, BNSF Railway, Kansas City Southern Railway, and Dept. of 

Commerce/U.S. Census Bureau 
19

Figure 10 – U.S. soybean exports to Mexico by mode 

Source: USDA/GIPSA, Union Pacific Railroad, BNSF Railway, Kansas City Southern Railway, 

and Dept. of Commerce/U.S. Census Bureau

Table 12 – U.S. soybean exports to Mexico by route, 2007-2008 (MT)

Route 2007 2008 

Maritime:

U.S. Gulf East Gulf 13,825 0 

Mississippi River 1,343,835 1,007,779 

North Texas 75,529 86,712 

South Texas 0 0 

Subtotal 1,433,189 1,094,491 

Total 1,433,189 1,094,491 

Maritime as % of total exports 39 31 

Overland 2,229,945 2,455,563 

Overland as % of total exports 61 69 

Total U.S. Exports 3,663,134 3,550,054 

 Source: Dept. of Commerce/U.S. Census Bureau/Foreign Trade Statistics and USDA/GIPSA 

0

10

20

30

40

50

60

70

2007 2008

Percentage

Ocean Rail Truck
20

Figure 11 – Mexico’s average monthly soybean imports 

Source: SIAP/SAGARPA

 

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Jan Feb Mar April May June July Aug Sept Oct Nov Dec

All soybean imports 03-07 9.2 7.6 8.2 10.6 8.4 7.9 7.9 7.3 6.5 11.3 9.3 5.9

U.S. soybeans 03-07 9.2 7.6 8.2 10.1 7.7 6.9 6.4 5.9 6.3 11.3 9.3 5.9

U.S. soybeans 2008 10.2 9.4 9.3 10.2 9.6 8.1 7.1 8.1 2.7 13.5 7.2 4.7 Percentage
21

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