OXXO announces household essentials range with dairy priced around 20 pesos

Source: mx.edairynews.com
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OXXO, the convenience-store business of FEMSA, has announced Canasta OXXO, a range of household essentials with reference prices of around 20 Mexican pesos per item. The initiative targets everyday grocery purchases traditionally made at supermarkets, public markets and neighbourhood grocers.
OXXO announces household essentials range with dairy priced around 20 pesos

Pedro Nieto, OXXO’s commercial director for daily replenishment, said the initiative would draw on frequent customer visits and the reach of the company’s store network. The assortment will include grains, oils, canned goods, dairy products and personal-hygiene supplies. Established brands will feature alongside the group’s own labels, including La Posada and Azálea. Basket-shaped signs will identify participating products on shelves and display units.

The report places the dairy offering against an average supermarket price of more than 25 pesos for a litre of whole milk in Mexico. It describes a retail market where cow’s milk is sold alongside substitutes, imitation products and blended dairy preparations. Ingredients used in these preparations include imported dried whey, modified starches and hydrogenated palm-derived vegetable fats. According to the report, such formulations are commonly used to achieve low retail prices.

The article cites Mexican standards NOM-155-SCFI-2012 and NOM-183-SCFI-2012 in its discussion of product identification. It says combined dairy products must clearly state their milk percentage and dairy-protein content, with a minimum protein level of 15 grams per litre. It calls for the Procuraduría Federal del Consumidor (Profeco) and the Secretaría de Economía to oversee compliance with front-of-pack labelling requirements, including distinctions between cow’s milk, blended dairy products and preparations containing vegetable fat.

In its account of dairy production, the report describes udder-health procedures at specialised farms supplying milk for commercial processing. These include stripping the first streams of milk and applying an antiseptic teat treatment before milking to help prevent environmental mastitis. Raw milk is then transferred immediately to rapid-cooling tanks maintained at 4°C. The article identifies this cooling stage as a means of controlling bacterial growth and maintaining stable titratable acidity before processing.

At processing plants, the report describes continuous pasteurisation above 72°C, or ultra-high-temperature treatment at 138°C for four seconds followed by aseptic filling into multilayer packaging. It links UHT treatment and protective packaging to the preservation of casein micelles and milk-fat globules over months of storage at room temperature. For convenience stores, it identifies this shelf life as a logistical feature supporting rapid inventory turnover without filling refrigerated storage with the entire milk assortment.

The report also discusses costs borne by Mexican dairy farms. Feed accounts for more than 70% of operating expenditure per litre produced at specialised and medium-sized operations, it says. Typical rations include maize silage, alfalfa hay and commercial protein concentrates. The article warns that retail pressure to sell dairy products at 20 pesos can pass upstream through reductions in the prices processors pay farmers. It argues that, without predictable processing contracts covering higher feed and energy costs, producers’ weekly cash flow and investment in farm technology, biosecurity and animal welfare can come under pressure. It also advocates including local pasteurisers and domestic milk-producing regions in supply arrangements for retailers’ own-label products.


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