Mexican broiler production to increase

Mexican broiler production in 2007 is forecast to be 2,641,000 mt, 2.5% more than the estimated 2,576,000 mt in 2006.

The US Foreign Agricultural Service (FAS) reported that Mexico will likely export 454,000 mtof broiler products to the United States this year. It raised estimates for US imports in 2007 by only 7%, as demand for leg quarters and mechanically separated chicken for further processed products has increased more than previously expected.

The five-year safeguard for US chicken leg quarter imports will expire on January 1, 2008, with the import tariff dropping to zero. This year the duty for over-quota chicken leg quarters is 19.8%. Some retail grocery chains are importing whole chickens, which they cut up for sale. The FAS expects this trend will continue in 2009.

Despite higher prices for poultry and reduced purchasing power for certain consumers, poultry prices remain more competitive than beef and pork.

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