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Economia Opens 221K Metric Ton Egg Quota

by 5m Editor
13 July 2012, at 10:00am

MEXICO - On 6 July, the Secretariat of Economy (SE) announced that it planned to open a 132,000 metric ton (MT) tariff-free tariff rate quota (TRQ) in order to help stabilize domestic egg prices. By the end of the day, SE increased the planned TRQ to 221, 000 MT as it approximated estimated monthly egg consumption.

Egg prices throughout much of Mexico have skyrocketed over the past weeks as high pathogenic avian influenza has hit Mexico’s layer flock and raised concerns about egg and egg product availability. The United States remains eligible to export eggs to Mexico without any tariff imposed on US-origin eggs.

Private and industry sources declared that the recent statement by Secretary Ferrari is somewhat confusing as importing eggs from China is not a feasible option. Sources report that Poland currently supplies the European Union, who is paying a higher price compared to those that Mexico could pay, and the Ukraine will be in a similar situation. Imports from Turkey, would take up to 40 days for transit and costs would be passed along to consumers at prices likely beyond their purchasing power. Furthermore, industry sources declared that the SE announcement is contradictory as the Secretariat and industry officials have been claiming that there is sufficient domestic supply.

Nationwide egg prices have increased as have prices for other poultry and basic products (corn tortillas, beans, rice, etc.). Mexico City egg prices skyrocketed 56 per cent by the first week of July in comparison to the last week of June 2012. Sources report that this price increase is unjustified and is being attributed to speculative traders and distributors. Some private sources have declared that the SE announcement appears to be a maneuver to calm prices from escalating further and to unveil the possibility of using legal tools to control speculation.