According to USDA-FAS GAIN Report MX2024-0011 released on February 12th, domestic production in Mexico during 2024 will increase by 2.5 percent over 2023 to 3.950 metric tons. This quantity will represent 79.4 percent of the domestic requirement of 4.975 million metric tons. The remaining 1.025 million metric tons or 20.6 percent of requirement will be supplied by imports. Exports from Mexico are inconsequential amounting to 5,000 metric tons.
Chicken meat represents 60 percent of livestock production and is expanding at a faster rate than cattle and hogs. Domestic consumption per capita will attain 84 pounds in 2024.
In February 2023, the Administration published a Presidential Decree directing a phase-out of GM corn. Amid considerable confusion over interpretation, the Administration has persisted with their intention jeopardizing both the domestic industry and the export of corn from the U.S. amounting to $5 billion in annual value. On August 17, 2023, the United States Trade Representative announced the establishment of a dispute settlement panel under the USMCA Agreement contending that the decree is arbitrary and lacks scientific merit.
Trade with the U.S. is subject to an ongoing claim established by the Unit of Foreign Trade Practices that the U.S. is “dumping” leg quarters. The issue has been under review for twelve years without resolution. The Government of Mexico Presidential Decree to extend an exemption on tariffs to facilitate importation of food including chicken will continue through the current year. This decree allows chicken to be imported without a tariff from nations not currently enjoying free trade agreements. This concession has created competition from Brazil and Argentina.
During 2023, the U.S. exported 721,342 metric tons of chicken products to Mexico valued at $811 with a unit price of $1,124. Exports to Mexico represented 19.8 percent of total exports and 17.1 percent of value. Exports of broiler products to Mexico in 2023 were up 9 percent in volume and 6 percent in value compared to the previous year.