Mexican Dairy Federation: Projected loss of 7 billion pesos
The issue partly stems from the informal economy in the country, which makes it difficult to determine the exact figures, but it is estimated that between 500,000 and 700,000 animals enter the country illegally annually.
"It is reported that about 700,000 heads legally enter annually from Central America, and estimates suggest that an additional 500,000 to 700,000 enter illegally," he stated at a press conference.
This situation forces Mexican producers to cull the same number of heads because there is nowhere to sell them, as the others do not meet all the requirements, including sanitary ones, resulting in a lower price.States like Tamaulipas, Durango, Coahuila, Sonora, and Chihuahua, capable of exporting livestock to the United States, may suffer. There's also a proposal to modernize the tracing system using chips for more certainty on livestock movements. Tariffs on Mexican products are unlikely to directly impact the dairy industry due to minimal exports to the U.S., but there's a risk of an economic crisis impacting dairy consumption in Mexico.
