Liconsa's Abandonment of Mazatlán Collection Center Sparks Discontent

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Farmers in Sinaloa are dismayed as the Liconsa collection center project in Mazatlán is definitively abandoned. The facility was seen as vital for the local dairy industry.
Liconsa's Abandonment of Mazatlán Collection Center Sparks Discontent

The agricultural sector in southern Sinaloa, Mexico, faces a significant setback following the confirmed halt of a long-promised Liconsa collection center project in the municipality of Mazatlán. José Antonio Lizárraga Rivera, the president of the Local Cattle Association of Mazatlán, expressed deep frustration over this development, stating that the association has decided to terminate discussions on the matter.

The proposed collection center was intended to serve as a strategic hub for the state's most important dairy region, but it never materialized beyond promises. The original plan was for the government-owned Liconsa to purchase raw milk at a price of 11.50 pesos per liter, acting as a stabilizing force in the market, particularly against traditional cheese producers. Currently, pasteurization plants pay around 12.00 pesos per liter, but without a public buying option, farmers' bargaining power remains weak.

The failure to establish the collection center is attributed to a lack of follow-through from federal authorities, not the primary sector's unwillingness. Demonstrating their commitment, producers in El Recreo had offered a milk storage tank under a 40-year lease agreement. Despite having this strategic asset ready for use, the absence of an official response has stalled final agreements.

Efforts to revive the project included multiple trips to Mexico City by the Local Cattle Association leadership, but these proved fruitless. Originally proposed during Quirino Ordaz Coppel's state administration, the initiative continued to be a talking point in subsequent years. However, operational fatigue and a lack of positive outcomes led agricultural entrepreneurs to abandon negotiations.

This withdrawal highlights the challenges modern dairy farms in northwestern Mexico face in maintaining profitability and covering fixed costs. According to technical advisors and dairy economy analysts, the lack of formal collection centers limits the region's ability to ensure food safety and capture full value from total solids.

The future of the Mazatlán dairy basin now depends on the sector's ability to unify criteria under private and independent association schemes to defend the value of their production.


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