Mexico to leverage production of dairy products in 2024
Source: The DairyNews
Mexico's dairy sector is poised for growth in 2024, driven by favorable market conditions and strategic initiatives.
The USDA's Global Agricultural Information Network (GAIN) anticipates a surge in dairy production, buoyed by lower input costs and robust domestic demand.
Fluid Milk Production Set to Rise:
Expectations are high for a 2% increase in fluid milk production, propelled by streamlined operations, reduced input expenses, and a surge in consumer demand. The strengthening of the Mexican peso further enhances profitability for producers, fostering a conducive environment for expansion.
Cheese Production and Consumption Trends:
The cheese segment is also on an upward trajectory, with production forecasted to rise by 2% in response to escalating domestic and export demand. Consumption patterns reflect sustained growth, particularly in the hotel, restaurant, and institutional sectors. As economic conditions stabilize, household purchasing power is expected to bolster cheese consumption further.
Rising Butter Production and Imports:
Butter production is slated for a 2% uptick, driven by population growth and heightened demand from the hotel, restaurant, and institutional sectors. Import volumes are projected to surge by 17% in tandem with increased domestic consumption, while exports remain relatively stable.
Skimmed and Whole Milk Powder Dynamics:
Skimmed milk powder (SMP) production is set to increase by 2%, supported by enhanced fluid milk production and heightened utilization of milk drying facilities. Conversely, whole milk powder (WMP) production remains stagnant due to infrastructure limitations. Import volumes for both SMP and WMP are expected to rise substantially to meet escalating domestic demand.
Policy Landscape and Sectoral Outlook:
Recent policy changes, including duty-free imports of select dairy products, have facilitated market access and stimulated import activity. However, the impending presidential election in June 2024 introduces a degree of uncertainty, with potential implications for agricultural policy. Dairy stakeholders advocate for a stable regulatory framework and long-term government support to drive innovation and efficiency in the sector.
Fluid Milk Production Set to Rise:
Expectations are high for a 2% increase in fluid milk production, propelled by streamlined operations, reduced input expenses, and a surge in consumer demand. The strengthening of the Mexican peso further enhances profitability for producers, fostering a conducive environment for expansion.
Cheese Production and Consumption Trends:
The cheese segment is also on an upward trajectory, with production forecasted to rise by 2% in response to escalating domestic and export demand. Consumption patterns reflect sustained growth, particularly in the hotel, restaurant, and institutional sectors. As economic conditions stabilize, household purchasing power is expected to bolster cheese consumption further.
Rising Butter Production and Imports:
Butter production is slated for a 2% uptick, driven by population growth and heightened demand from the hotel, restaurant, and institutional sectors. Import volumes are projected to surge by 17% in tandem with increased domestic consumption, while exports remain relatively stable.
Skimmed and Whole Milk Powder Dynamics:
Skimmed milk powder (SMP) production is set to increase by 2%, supported by enhanced fluid milk production and heightened utilization of milk drying facilities. Conversely, whole milk powder (WMP) production remains stagnant due to infrastructure limitations. Import volumes for both SMP and WMP are expected to rise substantially to meet escalating domestic demand.
Policy Landscape and Sectoral Outlook:
Recent policy changes, including duty-free imports of select dairy products, have facilitated market access and stimulated import activity. However, the impending presidential election in June 2024 introduces a degree of uncertainty, with potential implications for agricultural policy. Dairy stakeholders advocate for a stable regulatory framework and long-term government support to drive innovation and efficiency in the sector.
