Dairy Producers in Jalisco Struggle with Low Prices
Source: dairynews.today
Milk producers in Jalisco are abandoning production due to inadequate industry prices.
Faced with daunting economic challenges, milk producers in Jalisco, Mexico, find themselves at a critical juncture.
According to the Productores de Leche de Acatic, the cost to produce milk ranges between 9 and 10 pesos per liter, yet the industry pays them only 7 pesos per liter, pushing many to the brink of unsustainability.
As the president of Productores de Leche de Acatic (PROLEA), Ramiro Ramírez, emphasizes, "No sale, the producers have to sell their cows to survive."
This price gap highlights a dire predicament; producers cannot cover their production costs, forcing them to rely heavily on Liconsa, a government body that buys from them at 11.50 pesos per liter.
However, the stability of this dependency is precarious, with Liconsa's subsidy of four pesos per liter critical to the business's viability. Without it, the purchase price could fall to seven pesos per liter. This economic strain, tied with the inefficiencies in government support, risks a significant section of the agricultural sector, with implications not only for local economies but also for food security.
According to the Productores de Leche de Acatic, the cost to produce milk ranges between 9 and 10 pesos per liter, yet the industry pays them only 7 pesos per liter, pushing many to the brink of unsustainability.
As the president of Productores de Leche de Acatic (PROLEA), Ramiro Ramírez, emphasizes, "No sale, the producers have to sell their cows to survive."
This price gap highlights a dire predicament; producers cannot cover their production costs, forcing them to rely heavily on Liconsa, a government body that buys from them at 11.50 pesos per liter.
However, the stability of this dependency is precarious, with Liconsa's subsidy of four pesos per liter critical to the business's viability. Without it, the purchase price could fall to seven pesos per liter. This economic strain, tied with the inefficiencies in government support, risks a significant section of the agricultural sector, with implications not only for local economies but also for food security.
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