Industrias Bachoco and the Mexican Chicken Industry
MEXICO - Like Brazil, South Africa and Thailand, Mexico is still very much a developing country. Its per capita GDP is a mere $10,000 — one-fourth of the GDP here in the United States.
15 December 2006
2 minute read
But in the last quarter alone, Mexico’s GDP rose 4.6%, compared with a rise of just 2.2% in the U.S.. And Mexico’s economy is predicted to grow at a 3-5% clip over the next 20 years. Mexico has a lot further to grow — especially when it comes to chicken production and consumption.
The Department of Agricultural and Applied Economics at Texas Tech University published a paper on Mexican chicken patterns. It is called 2025 Vision for Mexican Chicken Consumption. Based on extensive research, the school found that chicken consumption among the highest decile of Mexican consumers (i.e., the richest) increased more than 880% between 1984-2002. Meanwhile, for the fourth decile (the middle class), consumption increased 480%. And the tenth decile (the poorest) saw a 250% increase.
The two main reasons for the growth are the implementation of the North American Free Trade Agreement (which took effect in 1994 and limited the number of cheap U.S. hindquarters that could be imported into Mexico) and Mexico’s improving economy.
Source: Daily Reckoning
