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Mexico's Dairy Industry: An In-Depth Overview

Mexico stands as a pivotal force in the global dairy industry, supported by a robust production framework and advanced processing facilities that cater to both domestic demands and international trade.

Production and Livestock

In 2022, Mexico's dairy sector boasted an estimated 4 million dairy cattle, driving an annual milk production volume of approximately 12.5 billion liters. This production reflects a balanced integration of large-scale and smaller operations leveraging modern farming methodologies aimed at optimizing efficiency and quality.

Milk Processing and Product Manufacturing

The Mexican milk processing industry handled about 9 billion liters of milk in 2022. Integral to the country's dairy production is cheese, with a production volume of 470,000 metric tons, along with 100,000 metric tons of milk powder and 60,000 metric tons of whey. The industry emphasizes the use of advanced technologies, ensuring high standards of quality and efficiency.

Prominent Dairy Enterprises

• Lala Group: A dominant player in Latin America's dairy market, offering diverse products such as milk, cheese, and yogurt.
• Grupo Alpura: Known for its quality milk, cheese, and yogurt products.
• Sigma Alimentos: A leading food company with a strong dairy sector presence.

Notable Dairy Farms

• Rancho San Jose: Uses modern techniques for high-quality milk production.
• Agropecuaria El Encino: A key contributor to the national milk supply.
• Rancho Los Fresnos: Renowned for sustainable farming and high yields.

Trade: Exports and Imports

In 2022, Mexico's dairy exports were valued at around USD 300 million, whereas imports reached approximately USD 1.1 billion. The import surge was mainly due to domestic demand outstripping local production. Notable imports include milk powder, cheese, and whey, predominantly from major exporting nations.

Significant Market Events

• Adoption of innovative production techniques and increased infrastructure investments to fuel growth.
• The enhancement of trade agreements streamlining import/export processes with leading dairy-exporting countries.
• A 12% increase in U.S. cheese exports to Mexico by June 2023, underscoring Mexico's vital role in U.S. dairy exports.
• Projections indicate Mexico will surpass China as the leading U.S. agricultural export destination by 2025.
• The elimination of tariffs on EU cheeses and efforts against the challenges in the artisanal cheese market.
• Nestlé's strategic investments to boost local production, alongside Liconsa's supply chain enhancements.
• Government support in regions like Chihuahua to aid farmers during severe droughts.

Economic and Trade Insights

Despite facing economic hurdles, Mexico continues to be a significant importer of U.S. dairy products, a trend expected to persist through 2024. Past tariffs imposed by the U.S. have affected trade, although subsequent relief measures have lessened some impacts. Noteworthy expansions by companies like Nestlé showcase the ongoing industry evolution, while local initiatives like "Alileche" strive to fortify the domestic dairy sector. Nevertheless, issues such as rising criminal activity affecting milk production and sales fluctuations during specific periods, like Lent, remain challenges. The Federal Consumer Protection Office (Profeco) in Mexico continuously analyzes and evaluates various cheeses to ensure quality standards.

Additional Highlights

• Liconsa Milk Collection Centers in Hidalgo Make Significant Progress.
• Mexico is one of the participating countries in the inaugural World Cup of Dulce de Leche.
• Liconsa has resolved two weeks of overdue payments to dairy farmers, committing to timely future payments.
• Fresnillo, known for its silver production, is also noted for its traditional artisanal cheese making.

Modified: 2025/03/25