Rising Costs Lead to Closure of Dairy Plants in Chihuahua

The dairy industry in Chihuahua, Mexico, is experiencing a critical period marked by the closure of approximately 10% of its regional dairy plants. These closures are primarily attributed to sustained increases in production costs, taxes, and economic pressures. Industry leaders have voiced concerns over the operational viability of the sector, predicting that stability might not be achieved until 2026.

Despite a lack of agricultural cycles in the District of Riego 005 during 2025, cheese production and pricing have remained relatively stable. However, industry representatives warn that this stability is precarious and heavily reliant on public policies that help regulate the raw milk market.

The intervention of Liconsa, now operating as Leche del Bienestar, is considered a key factor in preventing seasonal surpluses and maintaining price levels. By purchasing milk from producers, Leche del Bienestar helps mitigate the impact of excess supply that the cheese industry cannot fully absorb.

Structural threats persist with increases in wages, taxes, and input costs, which could lead to higher consumer prices or further closures of dairy establishments, exacerbating the region's loss of industrial capacity.

Additionally, the sector faces competition from imitation cheeses, which are cheaper but offer less nutritional value. Producers emphasize the importance of promoting authentic dairy products to sustain the supply chain and ensure product quality.