Liconsa, S.A. de C.V.: A Pillar of Mexico's Dairy Industry

Based in the heart of Mexico City, Liconsa, S.A. de C.V. is a prominent player in the Mexican dairy industry, renowned for its commitment to enhancing nutrition among vulnerable populations. As a government-owned entity, Liconsa prioritizes social objectives, ensuring that its dairy products remain accessible and of high quality.

Financial Indicators

Despite its focus on social impact, Liconsa maintains a keen eye on operational efficiency. Recently, the company allocated 24 million pesos to settle overdue subsidies, a crucial step for the sustainability of its operations. The company has managed to stabilize the milk price at 11.50 pesos per liter, balancing economic stability for farmers with affordability for consumers.

Key Developments

Liconsa has been proactive in expanding its infrastructure. A new milk collection center in Nicolás Bravo, Quintana Roo, with a capacity to process 5,000 liters daily, underscores its commitment to supporting local farmers and enhancing the supply chain. Future plans include a cheese factory in El Recreo, Sinaloa, aimed at stabilizing milk prices and ensuring fair compensation for farmers. The network of milk collection centers is also growing, with new sites in Chihuahua and Jalisco, bringing the total to 68 centers.

Challenges

The company faces several challenges, including the distribution of adulterated milk by criminal groups, which threatens market integrity and consumer trust. Environmental issues, such as screwworm infestations and droughts in Campeche, have affected dairy cattle. Payment-related concerns for dairy producers in Jalisco are also being actively addressed by Liconsa.

Future Outlook

Liconsa is set to play a pivotal role in Mexico's 2025 food security strategy through the 'Más Leche, Más Bienestar' program, which aims to improve nutrition and food security for vulnerable groups. Plans include establishing a pasteurization plant in Salina Cruz, Oaxaca, to support the local dairy industry and ensure the availability of high-quality pasteurized milk.

Community Impact and Collaborations

Collaborating with the Ministry of Agriculture and Rural Development (SADER), Liconsa is strategically placing new dairy stores to improve consumer access and reduce distribution costs. By purchasing raw milk from Mexican producers, the company secures a stable market and fair prices, encouraging farmers to enhance production efficiency and quality. The 'Leche para el Bienestar' program ensures high-quality fortified milk reaches priority groups, including children, adolescents, and the elderly.

A state-owned company involved in purchasing raw milk from farmers, Liconsa is being urged by dairy farmers in Sinaloa, Mexico, to adjust raw milk prices regionally and expand purchase quotas. The current guaranteed price fails to cover operational expenses, threatening the economic viability of the sector. Liconsa will suspend milk purchases from Aguascalientes producers in December due to budgetary issues. Liconsa's purchase suspension is part of the company's strategy to close the fiscal year. It acts as a price regulator, and its purchase program is vital for economic stability in the primary sector, highlighting a need for budget restructuring to support social supply programs.

Modified: 2025/11/14