June 26, 2017

26/06/2017: Poultry: Recent trends and bright perspectives

A strategic industry: Applying a Dutch approach in Mexico

By Alex De Kerpel, Agrimex Holanda Representative, Mexico City

The poultry industry is undoubtedly the most dynamic livestock activity in Mexico, accounting for 63.6 percent of it in 2016. At the same time, it accounted for almost a full percentage point of the national GDP (compared with circa two percent product contribution from the much boasted automotive industry). 

While AMH attends the most relevant breeding industry events in
Mexico, our members will meet in most others, in the Americas and worldwide
Image credit: Agrimex Holanda

The sector generates 220,000 jobs in 18 Mexican states and, with a reported 4.6 percent in 2016; it maintains a steady annual growth actually doubling that of the national GDP (2.3 percent). Last year the Mexican egg industry registered a 6.2 percent growth rate (32bn pieces), whereas chicken meat registered a 3.1 percent growth (A 6m tonnes combined output of chicken/turkey).

Prospects are excellent too, considering Mexico is the leading consumer of egg on a global scale (with a 23kg annual consumption per capita) and one of the most dynamic chicken meat markets (32 kg per capita).

Despite its own enormous productive capacities, Mexico remains an importer of egg (24,000 tonnes from the US in 2015), whereas the chicken meat imports (which nowadays equal 13 percent of local production), registered a growth rate of 14.4 percent in the same period (≈481,340 tonnes, mostly inbound from the US and Brazil).

According to the National Poultry Association (UNA), the industry consumes 15.5m tonnes of balanced food, of which 63 percent are fodder grains (corn and sorghum with a combined 9.8m tonnes).

Feed actually accounts for 66 percent+ of the poultry products’ related production costs. Mexico’s dependency on imported fodder grains keeps growing. A partial annual estimate figure for yellow corn imports stood at 10,8m tonnes (Oct 2016), of which at least 50 percent correspond to the poultry industry.

The poultry industry (and particularly the egg production) traditionally concentrates in the Bajio region, the Center and Western States of Mexico (76.7 percent of total output in just 10 states). This pattern is now being challenged as the recent outbreaks of HPAI (of which the H7N3 2012 contingency represented a fall exceeding seven percent of all poultry production) increasingly make companies opt for relocation to the East and Southeastern areas, which are less exposed to the North American southbound migration/ transmission corridors.

This trend altogether represents for some companies the opportunity to modernise their existing processes and equipment. Companies are highly integrated, and a handful of them are responsible for most of the production. At least two of them, which are 100 percent Mexican owned, are leading protein producers, true references on a global scale.

Read the full article, HERE.

The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.

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