To combat inflation, Mexico has announced the suspension of import tariffs for chicken meat and another 26 products among food and agricultural inputs.
The absence of tariffs, which will continue for a year, is valid for nations authorised to export these products to the country, which, in the case of poultry, includes Brazil or Argentina. No quotas have been noted.
Currently, inflation stands at 7.68% annual rate, almost double the central bank’s target.
“With the purpose of reducing inflation and the fall in consumption of Mexican households, through various measures, among which is exempting 21 products from the basic basket and 6 strategic inputs from import duties,” explained the Official Gazette of the Federation.
According to the Brazilian Association of Animal Protein (ABPA) president, Ricardo Santin, Brazil has increased its relevance among partners for Mexico´s food security.
“Brazil has complemented the Mexican demand for chicken meat, collaborating with local industry… In this context, it is expected that our country will be able to increase volumes for this destination,” analyses Santin.
According to ABPA data, Mexico is currently the 8th largest Brazilian chicken importer. Between January and April, the country imported 58,500 tonnes, up 128.6% from the same period in 2021 (25,600 tonnes).
The results are partially explained due to the highly pathogenic avian influenza pandemic in more than 30 states in the US, a traditional supplier to Mexico.
Brazilian chicken exports to China decreased sharply in April, however, meanwhile, shipments are increasing to Arab and European countries. This scenario is keeping Brazil near to an exportation record level.
The high demand from abroad has been pushing up average prices of the product. In addition to the war in Ukraine, an important world supplier of chicken meat, recent cases of avian influenza have limited international supply from Europe and US.
According to data from Secex (External Commerce Secretary), Brazil exported 418,200 tons of chicken meat in April, a slight 0.1% down than March, but still 5.7% higher than the volume from April 2021.
Between March and April, chicken meat exports to China decreased by 23.5%, totaling 46.1 thousand tons last month. On the other hand, to the United Arab Emirates, Brazil shipped 42.7 thousand tons of the product last month, an increase of 17.7% compared to that in March, according to Secex.
To the Netherlands, Brazil exported 13.8 thousand tons of chicken meat in April, a staggering 35.3% up in the monthly comparison.