U.S.-Mexico production costs compared: At present, livestock production more favorable in Imperial Valley

Cattle production rates and feed costs are similar in Baja California and Southern California. However, Mexican feedlot and dairy enterprises have higher finance charges and higher total production costs than comparable U.S. enterprises. Assuming current feedlot costs and livestock prices, the most cost-effective system of producing livestock in the Southwest is to maintain the cowherd in Mexico but to feed the calves to slaughter in the Imperial Valley. With current dairy costs and prices, dairy cattle production is more favorable in Southern California than in Baja California.