Required Report - public distribution

**Date:** 3/8/2007

**GAIN Report Number:** MX7018

MX7018

**Mexico**

**Poultry and Products**

**Semi Annual Report**

**2007**

**Approved by:**

![](media/image1.wmf)Suzanne Heinen

U.S. Embassy Mexico City

**Prepared by:**

Gabriel Hernandez

**Report Highlights:**

Mexico's 2007 chicken meat production forecast has been revised lower,
although it is still expected to exceed the 2006 level. Higher feed
costs are expected to dampen production in 2007. Consumption for 2007 is
still expected to slightly surpass 2006 at around 3.1 MMT, and imports
are also forecast higher. The growing trend towards vertical integration
and consolidation in Mexico's poultry industry is expected to slow due
to new Federal regulations.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Mexico \[MX1\]

\[MX\]

Table of Contents

[**SECTION I. SITUATION AND OUTLOOK
3**](#section-i.-situation-and-outlook)

[PRODUCTION 3](#production)

[CONSUMPTION 5](#consumption)

[TRADE 5](#trade)

[POLICY 6](#policy)

[MARKETING 6](#marketing)

[SECTION II. STATISTICAL TABLES 7](#section-ii.-statistical-tables)

[BROILERS WET MARKET PRICES 7](#broilers-wet-market-prices)

[CHICKEN LEG QUARTER WHOLESALE PRICES
7](#chicken-leg-quarter-wholesale-prices)

[MEXICAN IMPORTS FOR SELECTED POULTRY PRODUCTS Jan-Sep 2006
8](#mexican-imports-for-selected-poultry-products-jan-sep-2006)

# 

<table>
<colgroup>
<col style="width: 21%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p id="psd-table" class="heading">PSD Table</p></td>
</tr>
<tr class="even">
<td>Country</td>
<td colspan="9">Mexico</td>
</tr>
<tr class="odd">
<td>Commodity</td>
<td colspan="5">Poultry, Meat, Broiler</td>
<td colspan="4">(MIL HEAD)(1000 MT)(PERCENT)</td>
</tr>
<tr class="even">
<td></td>
<td colspan="3">2005 Revised</td>
<td colspan="3">2006 Estimate</td>
<td colspan="3">2007 Forecast</td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td>Market Year Begin</td>
<td colspan="3">01/2005</td>
<td colspan="3">01/2006</td>
<td colspan="3">01/2007</td>
</tr>
<tr class="odd">
<td>Inventory (Reference)</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Slaughter (Reference)</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Production</td>
<td>2,498</td>
<td>2,510</td>
<td>2,498</td>
<td>2,610</td>
<td>2,635</td>
<td>2,576</td>
<td>2,724</td>
<td>0</td>
<td>2,641</td>
</tr>
<tr class="odd">
<td>Whole, Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Parts, Imports</td>
<td>374</td>
<td>360</td>
<td>378</td>
<td>400</td>
<td>378</td>
<td>430</td>
<td>424</td>
<td>0</td>
<td>454</td>
</tr>
<tr class="odd">
<td>Intra-EU Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Other Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Imports</td>
<td>374</td>
<td>360</td>
<td>378</td>
<td>400</td>
<td>378</td>
<td>430</td>
<td>424</td>
<td>0</td>
<td>454</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>2,872</td>
<td>2,870</td>
<td>2,876</td>
<td>3,010</td>
<td>3,013</td>
<td>3,006</td>
<td>3,148</td>
<td>0</td>
<td>3,095</td>
</tr>
<tr class="odd">
<td>Whole, Exports</td>
<td>1</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Parts, Exports</td>
<td>0</td>
<td>1</td>
<td>0</td>
<td>0</td>
<td>1</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Intra EU Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Other Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Exports</td>
<td>1</td>
<td>1</td>
<td>0</td>
<td>0</td>
<td>1</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Human Consumption</td>
<td>2,871</td>
<td>2,869</td>
<td>2,876</td>
<td>3,010</td>
<td>3,012</td>
<td>3,006</td>
<td>3,148</td>
<td>0</td>
<td>3,095</td>
</tr>
<tr class="odd">
<td>Other Use, Losses</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
</tr>
<tr class="even">
<td>Total Dom. Consumption</td>
<td>2,871</td>
<td>2,869</td>
<td>2,876</td>
<td>3,010</td>
<td>3,012</td>
<td>3,006</td>
<td>3,148</td>
<td>0</td>
<td>3,095</td>
</tr>
<tr class="odd">
<td>Total Use</td>
<td>2,872</td>
<td>2,870</td>
<td>2,876</td>
<td>3,010</td>
<td>3,013</td>
<td>3,006</td>
<td>3,148</td>
<td>0</td>
<td>3,095</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>2872</td>
<td>2,870</td>
<td>2,876</td>
<td>3,010</td>
<td>3,013</td>
<td>3,006</td>
<td>3,148</td>
<td>0</td>
<td>3,095</td>
</tr>
</tbody>
</table>

Not official USDA Data

# 

# 

# SECTION I. SITUATION AND OUTLOOK

# 

## PRODUCTION

Mexico's chicken meat production forecast for MY 2007 (Jan-Dec) is
revised downward by 3.1 percent from the previous forecast to 2.6 MMT
due in part to higher input costs. However, this figure is still
slightly higher than the revised MY 2006 production estimate of about
2.5 MMT. Although Mexican producers enjoy favorable demand for their
products, industry sources report a slow down in production compared to
previous years due to a combination of factors, including higher feed
and production costs and competition from imports.

Mexico's poultry industry has invested in modern technologies to enhance
its competitive position. Nevertheless, some producers remain concerned
about their competitive position when the market fully opens in 2008.
Mexico's poultry sector has focused on consolidation and improved
positioning in the domestic market through increased distribution and
marketing of value-added poultry products. Poultry will continue to cost
less relative to other meats in Mexico, which should give the sector
advantages over other animal protein sources. The estimate for MY 2005
production has been adjusted slightly lower based on final industry
data.

Concerns over increased feed costs have become a key issue for Mexico's
poultry industry. Feed costs represent 55 to 60 percent of the total
cost of production for Mexican producers, which are major users of
imported feedstuffs from the United States. Industry sources report that
60 percent of the feedstuff usage is comprised of sorghum and yellow
corn, 23 percent from oilseeds and protein meals, and 17 percent from
other products such as safflower, orthophosphate, calcium, and
methionine. About 40 percent of the sector's consumption of yellow corn
and sorghum is imported from the United States. Mexico's poultry
producers prefer yellow corn to sorghum because of its better
nutritional value and the color it gives to the birds' skins.

Historically, Mexico has been a white corn producer and only a small
percentage of its corn production has been utilized as animal feed,
which has compelled the poultry industry to import the grain from the
United States. The recent surge in corn prices led to turmoil in retail
poultry and egg prices (but not producer prices) throughout the country.
In November 2006, the Poultry Producers Association (UNA) estimated that
for every \$1,000 pesos per ton increase in coarse grains, poultry
prices would increase by about \$2 pesos/kg. Industry sources report
that a price hike in January 2007 was due more to speculation rather
than a lack of supply or higher production costs. Industry research
showed that prices in some retail chains jumped from \$26.90 pesos (USD
\$2.48) per kilogram in November, to \$32.00 pesos (USD \$2.80) per
kilogram in December. In fact, it was reported that there was an
oversupply of poultry meat in December due to slack demand. Further
price escalations that started in mid-February appear to reflect higher
international corn prices. Producers also note that production costs
have also increased due to higher costs for electricity, packing
materials and transportation.

According to Mexico's poultry organization (UNA), feed consumption for
MY 2005 was 13.2 MMT, (8.3 MMT of feed grains, 2.6 MMT of oilseeds and
protein meals, and 2.3 MMT of other raw materials). Unofficially, for MY
2006, UNA estimates feed consumption 2.4 MMT higher. Projections for MY
2007 indicate that feed consumption could fall by 1 - 2 percent, due to
higher feed costs, mainly for yellow corn.

+--------+---------------+---------------+------------+--------------+
| **P    |               |               |            |              |
| OULTRY |               |               |            |              |
| SECTOR |               |               |            |              |
| FEED   |               |               |            |              |
| C      |               |               |            |              |
| ONSUMP |               |               |            |              |
| TION - |               |               |            |              |
| MMT**  |               |               |            |              |
+--------+---------------+---------------+------------+--------------+
|        | FEED GRAINS   | OILSEEDS AND  | OTHER RAW  | TOTAL FEED   |
|        |               |               |            |              |
|        | (YELLOW CORN) | PROTEIN MEALS | MATERIALS  | CONSUMPTION  |
+--------+---------------+---------------+------------+--------------+
| MY     | 8.3           | 2.6           | 2.3        | 13.2         |
| 2005   |               |               |            |              |
+--------+---------------+---------------+------------+--------------+
| MY     | 8.5           | 2.7           | 2.4        | 13.6        |
| 2006   |               |               |            |              |
+--------+---------------+---------------+------------+--------------+
| MY     | 8.6           | 2.7           | 2.4        | 13.7        |
| 2007   |               |               |            |              |
+--------+---------------+---------------+------------+--------------+
|       |               |               |            |              |
| Preli  |               |               |            |              |
| minary |               |               |            |              |
|        |               |               |            |              |
|       |               |               |            |              |
| Proj   |               |               |            |              |
| ection |               |               |            |              |
+--------+---------------+---------------+------------+--------------+

Industry sources report that consolidation and investment in
infrastructure continues to grow in Mexico's poultry industry, but the
expected expansion of large, vertically integrated companies is slowing
due to the implementation of provisions contained in Mexico's Federal
Economic Competition Law (*Ley Federal de Competencia Economica*). The
objective of this law is to restrict monopoly practices. Trade sources
report that some vertically-integrated operations could be considered as
monopolies under the provisions in the law. In 2005, three leading
companies accounted for 52 percent of total domestic production of
chicken meat. Medium-size companies are expected to merge into
cooperatives and associations, while smaller producers look to becoming
contract producers.

+--------------+------------+------------+-------------+-------------+
| ###### [C    |            |            |             |             |
| HICKEN FARM  |            |            |             |             |
| COMPOSITION] |            |            |             |             |
| {.smallcaps} |            |            |             |             |
+--------------+------------+------------+-------------+-------------+
|              | COMPANIES  |            | \%          |             |
|              |            |            | PA          |             |
|              |            |            | RTICIPATION |             |
|              |            |            | IN          |             |
|              |            |            | PRODUCTION  |             |
+--------------+------------+------------+-------------+-------------+
|              | 1996       | 2005       | 1996        | 2005        |
+--------------+------------+------------+-------------+-------------+
| LARGE        | 2          | 3          | 33          | 54          |
+--------------+------------+------------+-------------+-------------+
| MEDIUM       | 27         | 32         | 40          | 40          |
+--------------+------------+------------+-------------+-------------+
| SMALL        | 181        | 165        | 27          | 6           |
+--------------+------------+------------+-------------+-------------+

## CONSUMPTION

Consumption figures for MY 2007 were revised downward by 1.7 percent to
3,095 MT due to a slowdown in production and expected higher prices.
However, the new forecast is still higher than the 2006 estimate. In
addition to higher production costs, Mexico's producers could also be
hurt by reduced purchasing power among some consumers who are facing
higher prices for staple products such as tortillas. Nonetheless,
poultry will continue to remain cheaper than other animal protein
products such as beef and pork, which should give it a competitive
advantage. UNA estimates that average per capita consumption for chicken
increased from 53.28 pounds in 2005 to 55.06 pounds for 2006.

## TRADE

Chicken and turkey meat continue to be the primary poultry products
imported by Mexico. The processing industry imports mechanically
separated chicken and turkey (MSC & MST) and poultry cuts as inputs for
the domestic sausage and cold-cut industries. Import estimates of
chicken cuts, mainly leg quarters, and mechanically separated chicken
(MSC) for MY 2007 were revised upward by 7 percent compared to the
previous forecast due to rising demand from the processing industry.
According to industry sources, some retail store chains began to import
whole U.S. chickens in 2006, which were cut up for retail sale. It is
uncertain whether this trend will continue in 2007. Import data for MY
2005 was revised upward based on recent Mexican trade data. The United
States continues to be the main supplier of chicken meat to Mexico.
However, Chile's presence in Mexico's poultry market is expected to
continue, mainly in the provision of frozen chicken cuts.

Official figures indicate that 2006 imports of U.S. chicken leg quarters
(CLQs) (HTS 0207.13.03 & 0207.14.04) under the poultry safeguard filled
the established tariff-rate-quota as of November. According to official
data, the CLQ TRQ 2005 was also filled. (see table below for TRQ levels)

Imports of CLQs beyond Mexico's border areas are subject to an over
quota tariff of 19.8 percent for 2007. The safeguard will end in January
2008, when the TRQ is phased out and the high-tier tariff drops to zero,
as the following table shows:

  ----------- ----------------- ------------- ----------------------------
  **YEAR**    **TRQ (MT)**      **TARIFF**    **HIGH-TIER TARIFF**

  2003        100,000           0             98.8

  2004        101,000           0             79.0

  2005        102,010           0             59.3

  2006        103,030           0             39.5

  2007        104,060           0             19.8

  2008        0                 0             0
  ----------- ----------------- ------------- ----------------------------

Concerns over the presence of Low Pathogenic Avian Influenza (LPAI) and
Highly Pathogenic Avian Influenza (HPAI) in the United States in 2003
and 2004 resulted in the imposition of import restrictions for poultry
and poultry products from several U.S. states. The restrictions on LAPI
were lifted in October 2005, but the HPAI restrictions remain on the
following counties in Texas: Gonzales, Guadalupe, Galdwell, Bastrop,
Fayette, La Vaca, De Witt, Karnes, Wilson, Comal and Hays. USDA/APHIS is
continuing to work with SAGARPA to remove these restrictions.

As a result of the Japan-Mexico Free Trade Agreement, a Tariff Rate
Quota (TRQ) was established for Mexican poultry exports to Japan, as the
following table shows. The in-quota rate under this TRQ is zero.
Industry sources report that to date, no trade has occurred.

  ------------- --------------------------------- -----------------------
  **YEAR**      **DATE**                          **TRQ (MT)**

  1             04/2005-03/2006                   10

  2             04/2006-03/2007                   2,500

  3             04/2007-03/2008                   4,000

  4             04/2008-03/2009                   6,000

  5             04/2009-03/2010                   8,500
  ------------- --------------------------------- -----------------------

## 

## POLICY

No further changes from MX 6071. In January 2006, Mexico published a
modification of its Avian Influenza regulations; NOM-044-ZOO-1995
"National Campaign against Avian Influenza" (See report MX6013). The new
requirements were implemented in April 2006. Imports of U.S. poultry
must comply with one of two options regarding AI testing: a) a negative
result on 59 samples to AGID or ELISA tests or; b) that the flock/farm
of origin is recorded in the National Poultry Improvement Plan (NPIP).

## MARKETING

Generic advertising campaigns continue to be a valuable tool for the
sector in increasing domestic consumption of poultry products in Mexico.
Currently, most poultry meat in Mexico is sold as whole birds. However,
the share of poultry sold via supermarkets is expected to grow as
consumers become more accepting of poultry cuts and other poultry
products. USAPEEC continues to support marketing strategies within the
NEPP (NAFTA Egg and Poultry Partnership), which promotes the exchange of
information and technical expertise between both the U.S. and Mexican
poultry industries.

##  

# SECTION II. STATISTICAL TABLES

## BROILERS WET MARKET PRICES

+-----------------+--------------+--------------+-------+-------------+
| **[Broilers^^  |              |              |       |             |
| Wet Market      |              |              |       |             |
| Prices, Mexico  |              |              |       |             |
| City            |              |              |       |             |
| Pesos/kilogram  |              |              |       |             |
| ]{.smallcaps}** |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| ######## [Mon   | 2004         | 2005         | 2006  | \% Change   |
| th]{.smallcaps} |              |              |       | 05/06       |
+-----------------+--------------+--------------+-------+-------------+
| [Janua          | 18.08        | 21.63        | 23.04 | 6.51        |
| ry]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Februa         | 18.17        | 22.38        | 22.50 | 0.53        |
| ry]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Mar            | 19.63        | 22.50        | 22.73 | 1.02        |
| ch]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Apr            | 18.88        | 22.83        | 19.25 | (15.68)     |
| il]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [M              | 16.83        | 23.00        | 26.50 | 15.21       |
| ay]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Ju             | 19.35        | 22.00        | 19.00 | (13.64)     |
| ne]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Ju             | 20.38        | 22.67        | 20.33 | (10.32)     |
| ly]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Augu           | 20.25        | 22.17        | 20.58 | (7.17)      |
| st]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Septemb        | 20.21        | 21.38        | 21.50 | 0.56        |
| er]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Octob          | 18.10        | 20.25        | 21.25 | 4.94        |
| er]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Novemb         | 18.50        | 21.75        | 20.48 | (5.84)      |
| er]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Decemb         | 19.40        | 19.00        | 23.58 | 24.11       |
| er]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [Annual         | 18.98        | 21.80        | 21.73 | (0.23)      |
| Av              |              |              |       |             |
| g.]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+
| [^              |              |              |       |             |
| ^]{.smallcaps} |              |              |       |             |
| [Whole chicken  |              |              |       |             |
| including       |              |              |       |             |
| off             |              |              |       |             |
| al]{.smallcaps} |              |              |       |             |
+-----------------+--------------+--------------+-------+-------------+

[Source:]{.smallcaps} [National poultry association, una.]{.smallcaps}

## CHICKEN LEG QUARTER WHOLESALE PRICES

+---------------+------------+------------+------------+--------------+
| **[Chicken    |            |            |            |              |
| Leg Quarter   |            |            |            |              |
| Wholesale     |            |            |            |              |
| Prices,       |            |            |            |              |
| Mexico        |            |            |            |              |
| City]{        |            |            |            |              |
| .smallcaps}** |            |            |            |              |
|               |            |            |            |              |
| **[Pes        |            |            |            |              |
| os/kilogram]{ |            |            |            |              |
| .smallcaps}** |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [Month        | 2004       | 2005       | 2006       | \% Change    |
| ]{.smallcaps} |            |            |            | 05/06        |
+---------------+------------+------------+------------+--------------+
| [January      | 18.34      | 21.96      | 17.00      | (22.58)      |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [February     | 18.83      | 22.55      | 17.96      | (20.35)      |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [March        | 20.10      | 20.95      | 18.91      | (9.73)       |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [April        | 18.62      | 18.08      | 18.30      | 1.21         |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [May          | 18.50      | 20.34      | 20.87      | 2.60         |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [June         | 19.20      | 22.98      | 24.66      | 7.31         |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [July         | 21.84      | 27.75      | 18.57      | (33.08)      |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [August       | 22.40      | 27.07      | 22.42      | (17.18)      |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [September    | 19.64      | 22.32      | 20.05      | (10.71)      |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [October      | 19.55      | 18.23      | 20.00      | 9.71         |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [November     | 20.32      | 17.17      | 21.66      | 26.15        |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [December     | 21.16      | 18.78      | 24.50      | 30.46        |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+
| [Annual       | 19.87      | 21.51      | 20.41      | (24.22)      |
| Avg.          |            |            |            |              |
| ]{.smallcaps} |            |            |            |              |
+---------------+------------+------------+------------+--------------+

[Source: National information market service, (SNIIM)]{.smallcaps}

[2004 Exchange Rate Avg.: U.S.\$1.00 = 11.29 pesos]{.smallcaps}

[2005 Exchange Rate Avg.: U.S.\$1.00 = 10.89 pesos]{.smallcaps}

[2006 Exchange Rate Avg.: U.S.\$1.00 = 10.90 pesos]{.smallcaps}

## MEXICAN IMPORTS FOR SELECTED POULTRY PRODUCTS Jan-Sep 2006

## 

  ---------------------------------------------------------------------------------------
  **[H.S. Tariff          **[Description & Country of                 **[Volume
  Number]{.smallcaps}**   Origin]{.smallcaps}**                       MT]{.smallcaps}**
  ----------------------- ------------------------------------------- -------------------
  0105.11.01              Day old chicks, which do not need feeding   
                          during transport                            

                          U.S.                                        1,566

                          SPAIN                                       25

                          HUNGARY                                     18

                          SUBTOTAL (Thousand head)                    1,609

  0105.11.02              Breeding stock, layer-type with selected    
                          breed certificate when imports are no more  
                          of 15,000 heads in each operation           

                                                                      596

                          U.S. & SUBTOTAL (Thousand head)             596

  0105.11.99              Other                                       

                          U.S. & SUBTOTAL                             0

  0105.19.99              Other (Chickens)                            

                          U.S. & SUBTOTAL (Thousand head)             5

  0207.11.01              Other fresh or chilled whole poultry        

                          U.S. & SUBTOTAL                             22,314

  0207.12.01              Other frozen whole poultry                  

                          U.S.                                        1,991

                          CHILE                                       551

                          SUBTOTAL                                    2,542

  0207.25.01              Whole frozen turkey                         

                          U.S.                                        968

                          CHILE                                       1,205

                          OTHER                                       0

                          SUBTOTAL                                    2,173

  0207.33.01              Whole ducks, geese & guineas frozen         

                          U.S. & SUBTOTAL                             626

  0207.26.01              Mechanically deboned turkey meat            

                          U.S. & SUBTOTAL                             4,085

  0207.26.99              Fresh & chilled turkey parts                

                          U.S. & SUBTOTAL                             82,432

  0207.13.01              Mechanically deboned chicken meat fresh or  
                          Chilled                                     

                          U.S. & SUBTOTAL                             90,896

  0207.14.01              Mechanically deboned chicken meat frozen    

                          U.S.                                        29,490

                          CHILE                                       11,233

                          SUBTOTAL                                    40,723

  0207.13.99              Fresh & chilled chicken parts               

                          U.S. & SUBTOTAL                             3,963

  0207.14.99              Frozen poultry parts                        

                          U.S.                                        6,899

                          OTHER                                       6,820

                          SUBTOTAL                                    13,719

  0207.13.03              Chicken Leg Quarter, Fresh/chilled          

                          U.S.                                        57,003

                          OTHER                                       816

                          SUBTOTAL                                    57,819

  0207.14.04              Chicken Leg Quarter, Frozen                 

                          U.S.                                        56,711

                          OTHER                                       821

                          SUBTOTAL                                    57,532

  0207.27.01              Mechanically deboned turkey meat, frozen    

                          U.S.                                        8,543

                          OTHER                                       2,063

                          SUBTOTAL                                    10,606

  0207.27.99              Frozen turkey parts                         

                          U.S.                                        24,559

                          OTHER                                       4,202

                          SUBTOTAL                                    28,761

  0207.36.99              Duck, geese or guineas cuts, frozen         

                          U.S. & SUBTOTAL                             35

  0207.14.02 & 0207.36.01 Poultry livers                              

                          U.S. & SUBTOTAL                             3

  0407.00.01              Table eggs, fresh, including hatching eggs  

                          U.S. & SUBTOTAL                             4,285

  1601.00.01              Sausages of broiler or turkey               

                          U.S.                                        12,875

                          OTHER                                       48

                          SUBTOTAL                                    12,923

  1602.31.01              Processed meat (Turkey)                     

                          U.S.                                        1,731

                          OTHER                                       13

                          SUBTOTAL                                    1,744

  1602.32.01              Prepared or preserved chicken meat or offal 

                          U.S.                                        5,007

                          OTHER                                       1,187

                          SUBTOTAL                                    6,194

  1602.39.99              Other processed poultry meat                

                          U.S.                                        11

                          FRANCE                                      8

                          OTHER                                       6

                          SUBTOTAL                                    25

  0207.13.02              Chicken carcasses                           

                          U.S. & SUBTOTAL                             10,181

  0207.14.03              Chicken carcasses                           

                          U.S. & SUBTOTAL                             2,336

  0207.26.02              Turkey carcasses                            

                          U.S. & SUBTOTAL                             0

  0207.27.03              Turkey carcasses                            

                          U.S. & SUBTOTAL                             0
  ---------------------------------------------------------------------------------------

[Source: Global Trade Information Services, Inc. "World Trade Atlas"
Mexico Edition, September 2006.]{.smallcaps}

#