Dairy Farmers in Chihuahua Face Crisis Amid Subsidy Delays and Rising Costs

Dairy producers in the central-south region of Chihuahua, including Delicias, Meoqui, and Rosales, are experiencing a severe crisis threatening the continuity of long-standing dairy traditions. These producers have not received the Liconsa subsidy of 2.45 pesos per liter for over three weeks, vital for meeting the guaranteed price of 11.05 pesos per liter.

The situation has prompted protests, such as blocking Federal Highway 45, highlighting the sector's desperation and its abandonment by federal institutions that had promised support. The costs of production have risen sharply, with forage prices jumping from 80 to 180 pesos, an increase of 125%. This surge, combined with drought conditions and depleted aquifers, has created a financial storm that is closing down previously profitable dairy farms.

Producers are now unable to access governmental credit lines due to severe financial depletion. Santos Anchondo, president of the Small Producers of the Social Sector association, has urged authorities to increase milk prices and curb the rapid depopulation of dairy farms in Chihuahua, warning of the imminent collapse of the regional dairy herd.

The crisis extends beyond primary producers, affecting the entire regional dairy chain, including forage suppliers, cheese makers, and veterinary suppliers. Cheese producers in Delicias, typically processing 200,000 to 250,000 liters daily, can now only purchase half that volume, leading to overfilled collection centers and unsold milk.

Political responses have been slow, with legislators calling for immediate action to prevent the sector's collapse. Proposals include combining the guaranteed price and subsidy payments into a single transaction to avoid delays. However, without immediate Liconsa compliance, producers threaten to escalate their protests.