In 2021, Mexico’s chicken meat production is expected to increase by almost 3 percent

26.08.2020 16:00 "Agro Perspectiva" (Kyiv) — Following are selected highlights from a report issued by a U. S. Department of Agriculture attache in The Mexico City (Mexico), Mexico’s chicken meat and egg production have been affected by both the pandemic health emergency measures and domestic economic fallout, with lower than expected growth through the first half of 2020. However, the resilience of the poultry industry has allowed for a slight positive trend in 2020, expected to slightly improve in 2021 with a growth rate of up to 3 percent. The United States expanded its market share as Mexico’s main supplier for chicken meat and eggs, re-gaining market share lost by Brazil when Mexico’s third country tariff-rate quota (TRQ) for poultry expired. Through 2020 and 2021, domestic consumption of chicken meat will continue to grow due to increased household demand for a more affordable animal protein source.

Executive Summary:

In 2020, Mexico’s chicken meat production has been negatively affected by Mexico’s economic recession starting in 2019, the coronavirus pandemic, and the uncertainty surrounding Mexico renewing its third country TRQ for poultry. These factors partially inhibited domestic investment in technology and facilities. During January-June 2020, a depreciated peso and an estimated drop of more than 10 percent of Mexico’s gross domestic product (GDP) negatively

affected Mexico’s poultry imports. However, Mexico will continue to heavily depend on poultry imports, which will serve to satisfy domestic demand with the re-opening of businesses.

In 2021, Mexico’s chicken meat production is expected to increase by almost 3 percent from the year prior. Consumption of chicken meat in Mexico has grown due to household demand for a more affordable source of animal protein while cash-strapped households shift from more expensive animal proteins, such as beef and pork. The 30-percent decrease in demand from Mexico’s hotel, restaurant, and institutional (HRI) sector due to the coronavirus pandemic has

had some negative effects on Mexico’s chicken meat consumption.

In 2020, Mexico’s egg production was not as robust as expected. Producers held off on investing in better facilities and better genetics as they awaited a final decision on a renewal of Mexico’s third country TRQ for poultry and the entry into force of the United States-Mexico-Canada Agreement (USMCA). In 2021, Mexico’s egg production is expected to improve, with approximately 2.5-percent growth in domestic egg production compared to the prior year.

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