Dairy Producers in Mazatlán Face Challenges Over Raw Milk Prices

The ongoing conflict in Mazatlán, Sinaloa, regarding the price of raw milk has reached a critical point. Cheese producers in the region, who process a significant portion of local dairy production, have publicly acknowledged the economic difficulty in meeting farmers' demands for higher milk prices. They argue that their profit margins are closely tied to the final sale price of cheese to consumers and creameries, limiting their ability to absorb higher costs of primary inputs.

Despite these financial challenges, cheese producers have expressed willingness to engage in discussions with dairy associations. This sectoral dialogue is crucial as the local dairy economy depends on the operational continuity of both links in the supply chain. Historically, milk producers for cheese have received lower prices than those selling to pasteurizers, creating a disparity that has become unsustainable due to rising production costs.

The backdrop of this price dispute is the unprofitability of dairy farming under current conditions. Dairy farmers have threatened a symbolic milking halt to push for a fair price that reflects their increased operating costs. Analysts warn that the threat of production cessation is a warning sign that the cheese industry cannot ignore, as it would jeopardize their supply of raw materials and potentially lead to shortages in the local cheese market.

Adding complexity to the situation is the intense competition faced by cheese producers, including the presence of synthetic or adulterated dairy products sold at lower prices. This unfair competition further compresses their profit margins, making it difficult to pass on the increased cost of raw milk to cheese prices without losing customers. Thus, resolving the conflict requires not only internal price adjustments but also stricter regulatory oversight on product quality and safety in the market.