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

Company Location: Headquartered in Mexico City, Mexico, Liconsa plays a vital role in the nation's dairy industry.

Financial Indicators

Liconsa has shown fiscal responsibility by allocating 24 million pesos to resolve overdue subsidies. This effort supports operational stability while maintaining an affordable milk price of 11.50 pesos per liter, benefiting both producers and consumers.

Important Company Events

Liconsa is actively expanding its infrastructure, marked by the opening of a new milk collection center in Nicolás Bravo, Quintana Roo, with a capacity of 5,000 liters daily. This initiative supports local farmers and strengthens the supply chain. Plans include building a cheese factory in El Recreo, Sinaloa, to stabilize milk prices and ensure fair compensation for farmers. The company has expanded its milk collection network to 68 centers, with new additions in Chihuahua and Jalisco.

However, Liconsa faces challenges, such as the distribution of adulterated milk by criminal groups, screwworm infestations, droughts affecting dairy cattle in Campeche, and payment issues for producers in Jalisco.

Liconsa’s Chihuahua delegation is under investigation for financial and administrative irregularities, including payments to deceased people, transfers to ineligible suppliers, and undocumented milk purchases. This investigation is driven by Mexican legislator Arturo Medina, following reports from the Superior Audit Office of the Federation (ASF) and media inquiries regarding milk-collection contracts.

Company Plans

Liconsa plays a key role in Mexico's 2025 food security strategy through the 'Más Leche, Más Bienestar' program, focusing on enhancing nutrition and food security for vulnerable groups. Future plans include establishing a pasteurization plant in Salina Cruz, Oaxaca, to support the local dairy industry and ensure high-quality milk availability. The company collaborates with the Ministry of Agriculture and Rural Development (SADER) to place new dairy stores strategically, improving access and reducing distribution costs. By purchasing raw milk from Mexican producers, Liconsa secures stable markets and fair prices, encouraging farmers to enhance efficiency and quality.

Despite these efforts, farmers in Sinaloa are calling for regional adjustments in raw milk prices and expanded purchase quotas due to operational cost concerns. Budgetary constraints have led to the suspension of milk purchases from Aguascalientes producers in December as part of the fiscal year-end strategy. The supply of Liconsa milk in Celaya has been restored following road blockades that had interrupted service and affected families dependent on its products.