Mexican poultry meat and egg imports reach record levels in 2013

Approximately 4 million chickens were lost or euthanized in Mexico in 2013 through the end of May as a result of avian influenza, said Sergio Chavez, executive president of the Mexican national poultry association, Unión Nacional de Avicultores, speaking at the USA Poultry & Egg Export Council meeting in Williamsburg, Va. The total economic impact of the H7N3 highly pathogenic avian influenza outbreak in Mexico in 2012 was approximately $750 million.

Okeefe T Headshot

Approximately 4 million chickens were lost or euthanized in Mexico in 2013 through the end of May as a result of avian influenza, said Sergio Chavez, executive president of the Mexican national poultry association, Unión Nacional de Avicultores, speaking at the USA Poultry & Egg Export Council meeting in Williamsburg, Va. The total economic impact of the H7N3 highly pathogenic avian influenza outbreak in Mexico in 2012 was approximately $750 million. The industry lost or euthanized about 24 million birds; most of these birds were table egg layers or replacement pullets.

In 2013, just over 1.25 million table egg layers have been lost, which Chavez said represent less than 2 percent of the country’s total egg layer flock (see Table 1). The loss of over 800,000 broiler breeders, about 8 percent of the country’s total broiler breeder flock, has resulted in a shortage of fertile hatching eggs and will result in a decline in chicken meat production. An increased number of broiler hatching eggs has been imported from the United States to replace some of the shortfall, but it hasn’t been enough to prevent a shortage of chicken meat.

Broiler prices spiked

Producer live chicken prices have increased from approximately $9.09 per pound ($20 per kilogram) early in 2012 to a peak of approximately $13.64 per pound ($30 per kilogram) in May of 2013. In response to the high prices for chickens, on May 15, 2013, the Mexican government waived tariffs on up to 300,000 tons of chicken imports from countries that don’t have free-trade agreements with Mexico. Processors in Argentina and Brazil have asked to be inspected and certified for export to Mexico. As of mid-June, none of them have been certified.

The amount of chicken meat, excluding mechanically separated chicken, which has been imported into Mexico, has increased substantially as a result of the influenza outbreak (see Table 2). In the first five months of 2013, more chicken has been imported than is typically imported in an entire year.

Egg prices in Mexico soared

Table egg imports into Mexico, while lower in total volume than chicken meat imports, have increased by a much greater percentage. The producer price for table eggs in Mexico was approximately $3.33 per dozen for large eggs ($11.00 per kilogram) in June of 2012, just before the avian influenza outbreak was recognized, according to Chavez. The producer price for eggs peaked at $7.88 per dozen large eggs ($26 per kilogram) in May of 2013.

Responding to the outbreak

In addition to depopulation, vaccination has been used as a means of controlling the influenza outbreak. Chavez reported that through May 2013, 440 million doses of the vaccine developed for this outbreak had been distributed. He said that the vaccine is primarily being used on table egg layers and pullets and broiler breeders and pullets. The only compensation for lost birds that the Mexican poultry industry has received has come through increased prices for eggs and chicken meat, according to Chavez.

Exporting table eggs to Mexico

Table egg imports into Mexico in the first five months of 2013 were 25,000 tons, already more than double imports in 2012 and over 60 times more than what was imported in 2011 (Table 2). Alma Lilia de Leon, marketing manager, USAPEEC Mexico, said that many of the shell eggs imported into Mexico are coming from the U.S.

American egg producers have had to overcome some hurdles to both get their eggs into Mexico and have them be accepted by Mexican consumers. Mexican importers were not familiar with the U.S. grading system for eggs, de Leon reported, and she said that the color of the egg yolks of typical U.S. eggs are lighter in color than Mexican eggs, which she characterized as being more orange in color. To help educate importers, USAPEEC has prepared informational brochures on both egg color and the U.S. egg grading system in Spanish that are available for use by U.S. companies trying to export to Mexico.

Another hurdle to importing eggs into Mexico has been the lack of a cold chain for distribution of eggs in some stores and markets in Mexico. “Refrigeration issues are really difficult to accomplish,” de Leon said. Many retail outlets do not use refrigeration for eggs, but she said that this is changing in some instances so that imported eggs can be sold.

USAPEEC has also created an import manual for U.S. table egg producers who want to send eggs to Mexico. “You have to have shipping container labels done correctly,” de Leon said. “This is all laid out in the USAPEEC labeling manual.” Also, a list has been compiled by USAPEEC of actual and potential Mexican importers of U.S. table eggs and breaking stock. She said that USAPEEC has been working with the Mexican national poultry association on this project. 

 

Page 1 of 358
Next Page