Mexico Poultry Sector Hit by 118% Surge in Imports

Surging imports of Brazilian boneless chicken breast, which grew 118% between 2022 and 2025 to exceed 196,000 tonnes, have generated over MX$27 billion in cumulative losses for Mexico's poultry sector. The National Poultry Farmers Union (UNA) is requesting that the federal government replace zero-tariff import exemptions with tariff-rate quotas to protect domestic producers and safeguard planned US$3.5 billion private investments. The regulatory decision directly impacts domestic poultry integrators, international meat traders, feed grain suppliers, and retail distributors within Mexico's primary protein market.

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A 118% surge in duty-free Brazilian chicken imports is putting jobs, private capital investment, and rural development across Mexico at critical risk, warns the National Poultry Farmers Union (UNA). The organization is calling for urgent federal trade intervention to curb the influx. According to National Customs Agency of Mexico (ANAM) records, boneless chicken breast imports from Brazil climbed from 90,000 tons in 2022 to over 196,000t at the close of 2025, a volume UNA argues is distorting the domestic market and threatening the viability of local producers.

Addressing the trade imbalance, Lorenzo Martín, President of UNA, stated that the continuous influx of foreign poultry has generated severe financial damage across domestic production chains. "The business representation calculates that for every 1,000t of boneless breast entering national territory, four million chickens cease to be raised and the creation of 280 jobs is halted," Martín said. 

Industry estimates indicate that between Aug. 2025 and Aug. 12, 2026, the domestic poultry sector accumulated losses exceeding MX$27 billion (US$1.58 billion). Under the union's metrics, import volumes since 2022 have prevented the creation of more than 40,700 jobs in a poultry sector that directly and indirectly supports more than 886,000 Mexican families.

Per Martín, the tariff-exempt status granted to Brazilian poultry imports in 2022 under federal anti-inflationary measures has failed to achieve its primary objective of lowering retail prices for final consumers. According to data from the Federal Consumer Attorney’s Office (PROFECO) and customs authorities, commercial margins derived from tariff waivers concentrated among intermediaries and commercial distributors, while final consumers continued paying elevated retail prices and domestic producers absorbed margin compression. 

The import surge occurs even as Mexico maintains no bilateral free trade agreement with Brazil, exposing local producers to structural competitive asymmetries. UNA argues Brazilian poultry integrators benefit from direct domestic access to land, water, and feed grains, whereas Mexican producers must liquidate their primary grain inputs in US dollars.

Trade risks have further intensified following a regulatory determination by the European Union on May 12 to exclude Brazil from its list of authorized poultry exporters due to non-compliance with European standards regarding antimicrobial use in livestock production. With the European restriction taking effect on Sept. 3, UNA projects that a substantial portion of the poultry volume rejected by European buyers will be redirected toward the Mexican market, compounding domestic oversupply pressure.

Poultry Dominates Mexican Protein Market

Chicken represents Mexico's primary animal protein, accounting for 45.7% of national meat consumption, according to data from the Mexican Meat Council (COMECARNE). Total domestic chicken consumption reached 5.1 million t in 2025, equivalent to more than 14,000t per day, as rising prices for beef and pork led consumers toward more accessible poultry options. 

Although domestic poultry production expanded by 4.4% in 2025 to reach 7.31 million t, imports remain necessary to balance overall market demand, as 20t out of every 100t of chicken consumed in Mexico originates from abroad. The United States remains Mexico's primary foreign supplier of chicken imports, accounting for 59.1% of foreign purchases, followed by Brazil at 36% and Chile at 4.2%.

In response to market distortions, UNA formally petitioned President Claudia Sheinbaum and the federal government to eliminate zero-tariff exemptions on Brazilian boneless chicken breast and replace them with a structured tariff-rate import quota system. The poultry association clarified that the proposal does not seek border closures or a halt to international trade, but rather transparent market rules where imported volumes supplement national supply rather than displace local production.

Resolving the regulatory framework remains critical for the poultry industry's strategic outlook for the 2026–2030 period. Mexican poultry producers have outlined US$3.5 billion in planned capital expenditure dedicated to infrastructure, technological innovation, and commercialization networks over the next four years. The investment program has the capacity to create 18,000 direct jobs and support national food security targets established in official economic development programs, contingent on establishing stable trade parameters.