USDA Projects 2% Growth in Mexican Milk Production by 2026

The United States Department of Agriculture (USDA) forecasts a 2% rise in the volume of milk production in Mexico by 2026. This projection is primarily due to higher demand and stable cattle herd sizes. The USDA's optimistic outlook reflects confidence in the resilience and expansion capabilities of the Mexican dairy sector.

The Mexican dairy industry is expected to maintain its significant role in North America's dairy supply chain. The sector's growth is supported by improved efficiency and stable bovine inventories.

Despite anticipated production increases, the USDA highlights Mexico's growing reliance on dairy imports. Although domestic production is set to expand, internal demand continues to outpace supply, particularly for key dairy ingredients such as milk powder and industrial cheeses. The United States remains the dominant supplier for these products.

Mexican dairy farmers have managed to maintain, and slightly improve, productivity per cow through enhanced nutritional and genetic management, despite challenges such as climate and cost issues.

The USDA's forecast serves as an indicator of the health of the Mexican dairy sector, suggesting potential mitigation of consumer price pressures. However, to capitalize on this growth, Mexico will need to continue investing in infrastructure and efficiency management to reduce operational costs.