March 26, 2009

Mexico's poultry production is forecast to decline slightly in MY 2009 (January-December), due to higher production costs created by the devaluation of the peso, according to a US Department of Agriculture attache report posted Wednesday on the Foreign Agricultural Services Web site.

Consumption, however, is expected to increase slightly in MY 2009 as consumers favour lower priced poultry meat over other high priced meats. MY 2009 imports are also expected to increase, as imported poultry products for further processing are forecast to increase in response to a growing demand for cheaper processed poultry products.

The poultry meat production forecast was revised downward for both MY 2009 and MY 2008. In MY 2009, Mexican poultry production will face a reduction from the previous year. This decline is primarily attributable to higher production costs due to the adverse effect of changes to the exchange rate for dollar priced imported grains. However, the decline is expected to be temporary and the historical tendency toward increased production that the Mexican poultry industry has experienced over the past decade will eventually continue if at a slower rate.

Imports of poultry products to be used as raw materials are forecast to increase in MY 2009, primarily in response to growing demand from Mexican consumers for cheaper processed poultry products.

GOM officials continue working on a Mexico equivalency agreement with USDA's Food Safety Inspection Service (FSIS) and Animal and Plant Health Inspection Service (APHIS) that would allow for exports of Mexican produced poultry meat and egg products to the United States.