Ethanol Blog

The extent of the effect of Mexico's avian influenza on the country's poultry industry is yet unknown, as is its effect on the country's imports of U.S.-produced dried distillers grains with solubles, according to an article by the U.S. Grains Council (http://bit.ly/…).

Mexico's poultry industry is a significant driving force for feed grain demand, especially for sorghum and DDGS from the U.S. The country's poultry industry uses more than 10 million metric tons of feed grains annual and comprises 63% of the country's total livestock output.

According to USDA's Foreign Agricultural Service, Mexico is currently the second-largest importer of U.S. DDGS, importing nearly 1.5 million metric tons worth nearly $419 million in 2012.

Due to the highly pathogenic Avian Influenza, Mexico's poultry industry suffered a huge loss in production, as more than 24 million layers died or were sacrificed in 2012 due to the outbreak. Even more, the country's poultry exports decreased by 68% in 2012 from the previous year, while its poultry imports grew about 10%.

The U.S. Grains Council's director in Mexico Julio Hernandez said, "There is no question this will have an effect on imported feed grain products from the United States. What that number will be is purely speculative at this point. What we do know is that the situation is expected to become worse before it gets better."

Cheryl Anderson can be reached at Cheryl.anderson@telventdtn.com.