Mexico's production of poultry to grow by 4% this year but remains behind consumption growth rate
Due to a recent growth and vertical integration in the sector, Mexico's production of poultry is expected to reach 3.5 million tonnes (up by almost 4% compared to last year), estimates United States Department of Agriculture (USDA).
Still, the growth in production can't keep the pace with the internal consumption, chicken being the most affordable animal protein in Mexico for the low and mid-income population. The consumption forecast is 4.3 million tons for 2018, according to industry representatives from Mexico.
The top poultry meat-producing states are Jalisco, Veracruz, Queretaro, and Aguascalientes. Significant amounts of production also take place for on-farm consumption, particularly in small communities. There is also often dual usage of hens for eggs, and then as meat (spent hens) or broth, informs the USDA report.
For 2018, the import forecast is raised to 825,000 tons and most of them will come from the US producers.
Data gathered by Mexico’s National Institute of Statistics and Geography (INEGI) shows that 86% of Mexican imports of broiler meat originated in the United States in the first 11 months of 2017.
The figure is down by 45 compared with the same period in 2016, and by 8% compared to 2015 as Brazil has shown increased competitiveness and in the same time period represented by 12 percent of Mexican poultry imports, up from 7 percent for the same time frame in 2016, and 4 percent in 2015. The rest of 4% of imports is covered by Chile (2%) and a group of countries comprising Canada, Argentina, the Cayman Islands, Denmark, and Spain.
Exports are minimal compared with production and imports, but Mexico continues to seek to open new markets and struggles with reopening traditional ones, like Russia for example, Exports are forecast flat at 6,000 metric tons in 2018. 42% of that volume is to be sent in the US, while the rest of 58% is going to be split between Hong Kong, Vietnam, Congo, Brazil, Gabon, Benin, China, Angola, El Salvador, Ghana, the Democratic Republic of Congo, Liberia, and Guatemala.
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