Poultry Overview CIB Centro de Inteligencia Bafar
Mexico s meat production Total meat production in Mexico 2014 Swine 22% Turkey 0% Poultry 48% Beef 30% Poultry production rose 3.6% in 2014 vs 2013. Source: SIAP, SAT 2014
CHICKEN
National data of poultry meat 2014 Total poultry distribution 2014 Per capita consumption Apparent Consumption* (Thousand Lb) Export 0% 7,830,586 Import 19% 7,703,772 7,464,202 Domestic 81% 2012 2013 2014 64.4 Lb Per capita consumption of poultry meat in Mexico is 56.32 Lb. Per capita apparent consumption* (imports included) is 64.48 Lb. Apparent consumption is the sum of national production plus imports, minus exports Source: SIAP, SAT 2014
Poultry production territories 2014 State Anual Production (Thousand Lb) Market share % Production Jalisco 883,991 11% Durango 791,901 10% Veracruz 777,766 10% Aguascalientes 698,344 9% Querétaro 622,783 8% Guanajuato 483,685 6% Puebla 444,453 6% Chiapas 438,429 6% Yucatán 327,589 4% Sinaloa 319,136 4% Estado de México 275,497 4% Nuevo León 267,410 3% Coahuila 260,506 3% San Luis Potosí 209,389 3% 10% 11% 7% 9% 4% 6% <4% The mexican poultry production is mainly consumed in Valle de Mexico. Poultry imports are mainly consumed in the northern area of Mexico. Source: SIAP, SAT 2015
Mexican poultry and turkey imports 2010 2011 2012 2013 2014 Chile 1% Brazil 1% 2,000,000 1,800,000 1,821,912 Thousand LB 1,600,000 1,400,000 1,200,000 1,000,000 800,000 CAGR 6% CAGR -2% 39,596 Mostly chicken breast USA 98% 600,000 27,817 400,000 200,000 4,891 0 USA Chile Brazil Argentina Source: Trademap 2015
Main imports by product (Thousand Lb) Poultry anual Imports 2012 2013 2014 800,000 700,000 600,000 500,000 400,000 669,621 CAGR 13% 520,529 CAGR 1% CAGR -2% 35% of the poultry imports are MSC CAGR 19% CAGR 19% 300,000 200,000 100,000 0 Chicken leg quarters Mechanical separated chicken 101,910 84,366 26,208 Chicken breast Frames Chicken wings Source: Piers 2015
Poultry consumption in Mexico 2014 Chicken pieces, 6% Value added chicken, 4% Supermarket, 12% Public market, 19% Live Chicken, 33% Rotisserie, 26% * Public market refers to New York dress. Source: UNA 2015
Poultry consumption by piece 50.40% 33% 13.60% 2.20% 0.90% Whole chicken and other pieces Chicken leg quarter with bones Boneless chicken leg quarter Offal Other poultry Source: INEGI
Poll: Poultry consumers in Valle de México Do you consume hot or cold poultry meat?* 55% 21% 21% 3% Hot Hot and cold Cold None *Hot poultry refers to meat not refrigerated and cold poultry is refrigerated meat Source: UNA 2015
Poll: Poultry consumers in Valle de Mexico Where do you buy your poultry meat? 31.4% 24.3% 16.8% 15.9% 5.0% 3.4% 3.2% Public market Poultry store Supermarket Two or more places Tianguis None Other Source: UNA 2015
Economic units in Mexico Economic units per 10,000 habs Market National North Center Poultry Producers Butcher s shop 3.36 5.8 11.1 6.19 Fresh chicken shop 2.44 4.1 7.9 3.05 Sausage and dairy shop 1.1 1.6 3.1 1.62 Food service Hotels 1.03 1.7 3.3 1.64 Food service for companies 0.04 0.0 0.1 0.05 Food service for special ocasions 0.08 0.1 0.2 0.11 Full service restaurants 3.57 5.2 10.1 4.61 Snacks restaurants 6.74 10.4 20.0 13.03 Tacos and tortas restaurants 6.68 10.1 19.6 10.52 Self service restaurants 0.36 0.4 0.8 0.38 Pizza, burger, hot dogs and roasted chicken to go restaurants 3.3 4.9 9.4 5.23 Other kind of to go restaurants 2.8 4.0 7.7 3.09 Supermarkets 0.35 0.61 0.36 0.28 Source: INEGI 2010, DENUE 2015
Supermarkets Supermarkets are expanding, specially to the center-south area of Mexico. For that reason they are trying to replicate the public market consume habits. Supermarket openings during the last 12 months Supermarket poultry shelfs 57% 43% Center-south North Source: Infobasic 2015
Conclusions USA has access to 19% of the poultry mexican market, wich 35% is MSC, so finally USA imports represents 13% of the mexican poultry market. What are the key factors to access?
1. Yellow chicken
2. Smaller cuts
3. Value-added products
TURKEY
National data of turkey meat 2014 Total turkey distribution 2014 Domestic 12% Per capita consumption 367,552 Apparent Consumption* (Thousand LB) 363,680 Import 88% 359,799 3.3 Lb 2012 2013 2014 Apparent consumption is the sum of national production plus imports, minus exports Source: SIAP, SAT 2014
Turkey anual Imports Turkey anual Imports Total 2014: 321,358 Thousand Lb 45,000 40,000 35,000 30,000 25,000 20,000 15,000 82% of the turkey imports are for processed products 2012 2013 2014 10,000 5,000 CAGR -4% CAGR 1% CAGR -27% CAGR 0% CAGR -24% 0 Turkey thigh Turkey hens Turkey leg Turkey tail Turkey breast
Processed turkey imports Turkey anual Imports 14,000.0 2013 2014 12,000.0 10,000.0 8,000.0 6,000.0 GR 33% GR 46% GR 4% GR 429% 4,000.0 2,000.0 Turkey hot dog Smoked turkey Turkey ham Cooked turkey Other turkey sausages
Conclusions 82% of turkey imports are row material for processed products. Turkey products portfolio is getting bigger by its diversification and innovation development.
Turkey diversification and innovation