Overview

The Mexican dairy sector is a cornerstone of the national economy, boasting impressive production volumes and a significant role in global trade. The industry's growth is attributed to strategic investments and the adoption of modern farming techniques.

Production and Livestock

In 2022, Mexico had approximately 4 million dairy cattle, contributing to an annual milk production of about 12.5 billion liters. Both large-scale enterprises and smaller farms utilize contemporary techniques to ensure effective and quality operations.

Milk Processing and Product Manufacturing

In 2022, the milk processing sector in Mexico handled around 9 billion liters of milk. Cheese production reached 470,000 metric tons, while milk powder and whey production were approximately 100,000 metric tons and 60,000 metric tons, respectively.

Key Dairy Enterprises

Major players in the industry include the Lala Group, Grupo Alpura, and Sigma Alimentos. Lala Group is a leading entity in Latin America's dairy market, offering a wide range of products. Grupo Alpura is known for high-quality production and plans to invest 10,000 million Mexican pesos over the next five years. Sigma Alimentos focuses significantly on the dairy industry, planning infrastructure investments in Jalisco.

Trade: Exports and Imports

In 2022, Mexico exported dairy products valued at approximately USD 300 million, while imports reached around USD 1.1 billion due to domestic demand exceeding local production capabilities. This led to significant imports of milk powder, cheese, and whey, primarily from major exporting countries.

Significant Market Events

Recent developments include the adoption of innovative production methods and infrastructure investments aimed at industry enhancement. Improved trade agreements with prominent dairy-exporting nations have streamlined import/export processes. By June 2023, there was a notable 12% rise in U.S. cheese exports to Mexico. Additionally, tariff eliminations on EU cheeses and efforts to tackle challenges in the artisanal cheese market have been significant.

Economic and Trade Insights

Despite economic challenges, Mexico remains a significant importer of U.S. dairy products, a trend likely to continue into 2024. Investments from companies like Nestlé demonstrate ongoing advancements within the industry. Projects like "Alileche" aim to strengthen the domestic dairy sector, though challenges such as rising crime and market disruptions persist.

Future Projections

The Mexican government aims to boost national milk production by 15%, targeting 15 billion liters by 2030. Strategies include distributing Holstein cattle across various states to enhance production capabilities. President Claudia Sheinbaum has unveiled initiatives focusing on substantial investments to elevate national dairy output.

Regional Developments and Challenges

Campeche is emerging as a noteworthy player in Mexico's dairy sector, though challenges like screwworm and drought affect its agricultural prospects. Protests from Meoqui dairy farmers due to unmet federal support promises have led to highway blockades. Meanwhile, Zacatecas struggles with limited infrastructure for milk collection and commercialization. A national initiative plans to release over one million sterile flies to tackle the screwworm issue affecting cattle across Mexico.

Genetics and Feed Production

In Aguascalientes, efforts to improve cattle genetics through advanced biotechnology are underway, led by the State Government through the Secretariat of Rural and Agribusiness Development (Sedrae). Additionally, with an annual production of 41.4 million tonnes of animal feed, Mexico ranks as the fifth largest producer globally.

Mexico's southeast region is making strides in dairy production to reduce the nation's reliance on imports. Governmental initiatives, such as a new pasteurization plant in Campeche, support efforts to diminish import dependency. Dairy industry representatives in Mexico urge the government to retain free trade and avoid imposing tariffs on the sector. They emphasize the importance of collaboration and free trade to boost consumption, as well as the need to protect the identity of milk and its derivatives from non-dairy products.

Modified: 2025/05/18