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USDA GAIN Report Updates Egg Production in Mexico

08/25/2020

Mexico is a significant importer of U.S. eggs and was ranked second to Hong Kong during January through June 2020. Mexico purchased 23.0 million dozen, representing 35.3 percent of volume and 28.5 percent of total U.S. shell egg export value with a unit price of $0.73 per dozen.  Mexico is also the second-ranked importer of egg products receiving 6,320 metric tons, comprising 31.5 percent of U.S. export volume and 21.2 percent of value, with a unit price of $1,788 per metric ton.

 

The USDA GAIN Report MX2020-0042, dated August 15th 2020, estimates annual production in 2020 at three million metric tons including both shell eggs and egg products, corresponding to 50.1 billion dozen.  This conversion is based on the assumption that one metric ton of shell eggs represents 16,700 dozen.  Accepting a 78 percent average hen-day production, the flock in Mexico is estimated at 185 to 190 million hens.


Proan Feed mill

 

Due to an ongoing recession which commenced in 2019 and is exacerbated by COVID restrictions, egg production remained static between 2019 and 2020, but should increase by 3.3 percent in 2021.  Mexico is a net importer of 68,260 metric tons of shell eggs and egg products representing 2.2 percent of current production.  Given a population of 129 million, consumption of both shell eggs and egg products amounts 393 per capita.  Consumption is projected to increase by 3.8 percent in 2021 with a corresponding 3.3 percent increase in domestic production, requiring a higher level of imports.

 

According to the GAIN report, eggs have undergone a marked increase in price from mid-2019.  Industry data suggests that wholesale prices are now in the region of $1.25 per dozen compared to $0.82 in August 2019.  USDA anticipates the U.S. remaining the major supplier to Mexico, especially with the finalization of the USMCA.  Brazil relinquished market share to the U.S. with the loss of their third-country tariff rate quota.

 

The joint promotional endeavors of the AEB and the USAPEEC are critical to maintaining the goodwill of customers and consumer groups. Promotional activities include seminars and webinars directed to specific user groups in Mexico and programs intended to facilitate transport and customs clearance for U,S exporters.