Could Mexican poultry industry grow more because of ASF?
Although it is not good that the sector is doing poorly, there is an opportunity for Mexican poultry producers that shouldn't be missed
By Benjamín Ruiz, WATT Ag Net
May 10, 2019
The entire global animal protein market is being affected by outbreaks of African swine fever (ASF) and the fact that China will no longer produce the same amount of pork. Worldwide changes are coming.
Because of ASF, Brazil, Spain or the United States can be presented with great opportunities to export pork. Changes not only involve animal protein, but also grains. There is already news that Brazil is going to export fewer soybeans to China, so there will be more availability. The price of this feed ingredient could go down, but the delay in corn planting in the United States caused by weather is factor to watch.
Affect on Mexican poultry production
In an exclusive interview with Industria Avícola, Juan Manuel Gutiérrez, the new president of the National Poultry Producers Association (UNA, in Spanish) of Mexico, said he does not like to think the sector does well because another sector does poorly. He also hopes the swine industry in Mexico will not be affected, "because it would be very regrettable."
"It's not very encouraging, but somehow in the short term we would see an increase in poultry products demand," said Gutiérrez, and it is something that should result in profits.
It is evident that the pork supply is going down. In this case, "an immediate substitute could be chicken meat, which would generate a greater demand for our products, which — in the short term — represents an opportunity," he added.
In addition, Gutiérrez, who is also president of GM Group, the 12th largest egg producer in the country, believes that in such a situation swine industry will have to quickly work to adapt and be able to guarantee supply to certain markets. However, it is obvious that this would generate a decrease in the demand for some feedstuffs, which would reduce costs.
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