Imported Milk Powder and Low Prices Squeeze Veracruz Producers

Dairy producers in the central region of Veracruz are reporting a sharp reduction in income. Members of the Mujeres Ganaderas group, known as Mugan, receive 8.50 pesos per litre at the farm gate, while consumers pay more than 20 pesos for a litre of commercial fluid milk in supermarkets. The price difference is affecting the daily operation of farms and the production of artisanal cheese.

The producers identify imported milk powder as a major source of competition in Mexico’s dairy market. In 2024, Mexico imported approximately $1.07bn worth of milk powder from the United States. The imports reduce raw-material costs for large agro-industrial companies, while small local farms generally lack the infrastructure and output needed to compete at that scale.

María Luisa Rivera Lara, treasurer of Mugan in central Veracruz, said that transport to Liconsa collection centres is not financially viable for many small producers. A shortage of available freight and high transport charges have led them to sell directly to regional cheese-makers, at prices that the group describes as depressed. Canilec records show that small and medium-sized farmers account for 97% of Mexico’s registered dairy producers.

Demand for fresh whole milk in urban areas has also declined, according to the report. Mugan attributes the change to nutritional misinformation and the growing consumption of soy- and almond-based drinks. The group says its herds are managed through regenerative farming and grazing systems, without herbicides or anabolic agents, and that they produce A2A2 milk.

Mugan describes A2A2 milk as a product with high nutritional value. The group also says that it does not cause reflux or digestive discomfort, a claim presented as part of its account of the product’s characteristics. The producers continue to operate independently, using their own funds and community-based training networks.

The Veracruz dairy sector is calling for government measures to regulate the entry of imported milk powders and to connect sustainably produced farm milk more directly with consumers. The group says these measures are needed as producers face low farm-gate prices, logistical constraints and competition from industrialised formulas and plant-based beverages.