Liconsa, S.A. de C.V.: A Cornerstone of Mexico's Dairy Sector

Based in the bustling heart of Mexico City, Liconsa, S.A. de C.V. stands as a pivotal government-owned entity in the Mexican dairy industry. The company is dedicated to ensuring that dairy products remain accessible and of high quality, with a mission to enhance the nutrition of the country's vulnerable populations.

Financial Indicators

Despite its strong social focus, Liconsa maintains a keen eye on operational efficiency. Recently, the company allocated 24 million pesos to settle overdue subsidies, a crucial step for sustaining operations. Additionally, the price of milk has been stabilized at 11.50 pesos per liter, striking a balance between economic stability for farmers and affordability for consumers.

Key Developments

Liconsa is actively expanding its infrastructure. A new milk collection center has been established in Nicolás Bravo, Quintana Roo, with a processing capacity of 5,000 liters daily, supporting local farmers and strengthening the supply chain. Looking ahead, Liconsa plans to construct a cheese factory in El Recreo, Sinaloa, with objectives to stabilize milk prices and ensure fair compensation for farmers. The network of milk collection centers continues to grow, with new sites in Chihuahua and Jalisco, increasing the total number to 68 centers.

Challenges

Liconsa faces several challenges, including the threat of adulterated milk distribution by criminal groups, which jeopardizes market integrity and consumer trust. Environmental challenges like screwworm infestations and droughts in Campeche have adversely affected dairy cattle. Additionally, the company is addressing payment-related concerns for dairy producers in Jalisco.

Future Outlook

Liconsa is integral to Mexico's 2025 food security strategy through its 'Más Leche, Más Bienestar' program, aiming to enhance nutrition and food security for vulnerable groups. Plans include establishing a pasteurization plant in Salina Cruz, Oaxaca, to bolster 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 stable markets and fair prices, encouraging farmers to improve production efficiency and quality. The 'Leche para el Bienestar' program ensures that high-quality fortified milk reaches priority groups, including children, adolescents, and the elderly.

However, Liconsa is urged by dairy farmers in Sinaloa to adjust raw milk prices regionally and expand purchase quotas, as the current guaranteed price does not cover operational expenses, threatening the sector's economic viability. The company will suspend milk purchases from Aguascalientes producers in December due to budgetary issues, part of its strategy to close the fiscal year. Acting as a price regulator, Liconsa's purchase program is vital for economic stability in the primary sector, highlighting the need for budget restructuring to support social supply programs.

The company is also under scrutiny for delayed payments to dairy farmers and its policy on importing powdered milk, which adversely affects domestic raw milk producers. The Liconsa Milk Collection Center aims to secure the sale of raw milk at a guaranteed price, offering a stable and secure channel for selling milk, thereby formalizing the commercialization of dairy production in the region. Farmers are conducting feasibility studies and cost calculations to ensure compliance with Liconsa's infrastructure standards.

Liconsa's role as Mexico's main social milk buyer necessitates strengthening its operational and financial capacity to absorb committed production volumes and ensure timely payments. The supply of Liconsa milk in Celaya has been restored following road blockades, which had caused service interruptions, affecting needy families dependent on its products for basic nutrition.

Modified: 2025/12/05