Rising Grain Costs Challenge Dairy Production in Querétaro

The dairy industry in Querétaro is currently facing significant challenges due to the rising costs of grains and other essential inputs. These cost increases are putting pressure on the production of milk, particularly affecting the profitability of small-scale farmers. This situation has led to some producers leaving the market altogether.

The region of Querétaro produces as much as 1.5 million liters of milk per day. However, small dairy farmers are struggling to maintain their operations amid rising costs for feed and basic materials. The president of the Regional Livestock Union of Querétaro highlighted that the cost increases impact not only cattle feed but also other operational expenses related to milking and animal care. Farmers are often forced to absorb these higher costs without being able to pass them on to consumers, thereby squeezing their profit margins.

Grains and forages, essential for the diet of dairy cattle, have seen significant price hikes in recent months. For instance, the price of alfalfa and other forages has increased by more than 50%, a situation partly attributed to drought conditions and reduced availability of crop residues, further increasing the cost of animal feed.

This trend of rising production costs also affects the supply of fluid milk. Across Mexico, the increased grain costs have national repercussions, with some states experiencing production declines due to adverse weather conditions or efforts to maintain profitability.

For the international dairy industry, including producers, industrial players, and analysts, the situation in Querétaro illustrates how global market conditions and climate factors can impact the sustainable production of milk and the competitiveness of small and medium-sized enterprises compared to large chains or imported products.