Egg, Beef, and Chicken Prices Rise Due to Fluctuations and Pests
While inflation in Mexico shows signs of slowing down, the costs of chicken, beef, eggs, and pork have experienced their largest annual increase since December 2022. This rise can be attributed to several factors, including avian influenza, an outbreak of armyworms, and the devaluation of the peso against the dollar.
The avian flu has driven up egg prices and increased smuggling. According to Monex, in February, livestock product prices rose by 10.53% compared to the previous year. Among the top 10 products that pushed inflation in that month, eggs, beef, and pork stood out. After a slight decrease in January, egg prices soared by 15.2% year-over-year in February. This surge is linked to the health crisis in the U.S. poultry industry, where an H5N1 avian influenza outbreak has wreaked havoc, leading to the mass culling of 130 million laying hens since 2022. This situation has nearly doubled egg prices in the U.S. market and, as a result, increased the smuggling of Mexican eggs across the border with the United States. A 36% rise in the confiscation of Mexican eggs has been reported in border cities like El Paso, Texas, over the past five months. Furthermore, the shortage has prompted the U.S. to ramp up imports of eggs from Brazil, primarily for processed food.
In Mexico, there is a 20% deficit in chicken meat production, which forces the country to import from the United States. However, the avian flu outbreak and the culling of birds have pushed chicken meat prices up by 12.39% annually, marking a peak not seen since November 2022. When there is a shortage of a product, consumers often look for alternatives, and with rising chicken prices, beef and pork have become the preferred options. This increased demand has also led to a rise in their prices, but it's not the only reason. Recent armyworm cases in livestock in Chiapas have resulted in strict health measures, such as restrictions on the movement of cattle, quarantines, and inspections. This has caused shortages in some regions, according to Monex. Mexico, being one of the largest consumers of pork, faces a 42.2% deficit in its production. The devaluation of the peso, which reached 16.2% against the dollar between June 2024 and February 2025, has also impacted the cost of pork imports.
It is crucial for both consumers and producers to adapt to this new economic reality. With rising prices, it is advisable to diversify protein sources and analyze consumption patterns. Additionally, closely monitoring exchange rate behavior and its impact on imports can provide a clearer outlook for short-term and long-term financial decision-making.
