March 21, 2007

Mexican broiler production up 2.5 percent

Mexican broiler production in 2007 is expected to be up 2.5 percent to 2.64 million tonnes from 2.58 million tonnes in 2006.

About 450,000 tonnes, or a fifth of that production would be exported to the US, according to the US Foreign Agricultural Service (FAS), a 7-percent increase. The increase was due to a climb in demand for leg quarters and mechanically separated chicken for further processed products.

Chicken leg quarter import tariffs would be removed starting January 1, 2008, as a five-year safeguard expires. This year the duty for over-quota chicken leg quarters is 19.8 percent. To skirt around the tax, some US retail chains import whole chickens which they then cut up for sale.