September 28, 2010

Mexico to import more poultry by 2011

Mexico is expected to import 545,000 tonnes of poultry for 2010, 3.6% above the 526,000 tonnes estimated for 2010, according to the USDA's Foreign Agricultural Service (FAS) GAIN study.

A continued rise in imports is predicted by FAS despite economic difficulties in Mexico. This year's broiler imports will likely be 6.9% ahead of the 492,000 tonnes in 2009. FAS predicts the US to continue to supply about 95% of Mexico's broiler imports and 98% of turkey imports in 2011. Chile and Canada provide the remainder.

Leading broiler products imported are chilled or frozen mechanically-deboned chicken meat and chicken leg quarters (CLQs). Imports of poultry products are increasingly diversifying, FAS said. Deboned chicken meat is imported principally by domestic sausage and cold-cut industries and the CLQs are imported to be sold in supermarkets.

Large meat processors prefer fresh, refrigerated CLQs, while small and medium processors tend to use frozen product.

In 2011, whole chicken imports are expected to decline. Whole chicken imports, from January to April 2010, both chilled and frozen, declined more than 90% principally due to prices. Meanwhile, imports of chilled CLQs have increased approximately 33% compared to the same period during 2009, with all of these imports coming from the US.

Mexico's meat-processing industry is expected to continue importing raw materials in 2011 due to greater consumer demand of further-processed meat. However, from January-May 2010, imports of frozen mechanically-deboned chicken from the US decreased by 12.6% and 32% from Chile, the study reveals.

Regarding exports, Mexican chicken meat exports in 2011 are expected to increase 20% as a result of approval having been given to certain establishments to export to foreign countries, including the US. At the end of 2010, the Mexican government is expected to list a second plant as eligible to export to Japan, the report stated. This year Mexico started exporting chicken feet to Asia, chicken-breast meat and boneless CLQs to Japan. Chicken sausage exports are estimated at 4,000 tonnes for 2010.

Mexico and Brazil have stated their intention to sign a free-trade agreement. However, the Mexican poultry industry strongly opposes a free-trade agreement between Mexico and Brazil. The poultry industry perceives this proposed agreement as a threat, and is lobbying against it fearing that the Mexican poultry industry will be unable to compete against Brazil because of the limited availability of feed grains and commercial credit in Mexico. Moreover, the National Poultry Union said the Mexican poultry producers would face limited market access in Brazil because of high sanitary barriers for imported poultry products.

Mexican broiler production in 2011 is likely to increase by 1.5% to 2.85 million tonnes, compared with 2.809 million tonnes in 2010, and 2.781 million tonnes in 2009.