Impact of avian influenza outbreak in Mexico assessed

In Mexico, the recent outbreak of HPAI on layer farms in Aguascalientes raises questions as to how the market will react and if there will be any influence on domestic egg and poultry prices.

In addition it remains to be seen whether the Mexican industry will continue pushing as forcefully for expanded market access to the United States which has been restricted historically due to zoosanitary concerns, specifically exotic Newcastle disease (END), according to the USDA Global Agriculture Information Network.

On August 6, 2012, the Government of Mexico (GOM) through the Secretariat of Economy (SE) announced the final resolution for the antidumping case on the import of US chicken leg quarters (CLQ) and the imposition of compensatory duties for the import of these products. However, in light of the 2012 AI outbreak in the State of Jalisco and increased poultry and egg prices, SE determined that the compensatory duties would not be imposed until the supply and demand situation chain stabilised.

Regarding egg prices, prices seem to be stable and according to the National Service of Market Information (SE/SNIIM) retail prices are around 28 pesos per kilogram for most urban centers. Nevertheless, the Mexican Government is concerned with the potential for volatile price movements. On January 10, 2013, the Mexican Government through the Secretariat of Agriculture, Livestock, Rural Development, Fishery and Food (SAGARPA) and SE announced that there are no reasons to increase egg or poultry prices given that Aguascalientes is not a significant producer. Moreover, SE reported that the secretariat would be surveying markets to prevent price speculation or gouging.

At this point, it is uncertain whether this outbreak will similarly influence the GOM’s perspectives on whether to enforce the AD final determination.