Expanding Mexican Dairy Industry Bolsters Food Security

At the 2023 Dairy Sector Congress, key leaders celebrated Mexico's thriving dairy industry, boasting record-breaking milk production and outlining plans for growth and sustainability. Victor Villalobos, Minister, SADER, pointed out that by the end of August, a volume of 8.7 billion L of milk was produced, exceeding production projections by 66%. “Mexico boasts a robust and thriving dairy sector, which has seen a 9% production increase over the past five years,” he said. At this pace, the sector is expected to surpass 13.3 billion L by the end of 2023.

According to SADER, Jalisco is the top milk producing state in Mexico with 1.8 billion L, constituting 20.7% of national production. Chihuahua and Durango are next, accounting for 1.02 billion L and 1.009 billion L, respectively.

Villalobos reported that during 1H23, SADER purchased 253.9 million L of milk from 2,872 producers through Mexico’s Food Security SOE: Seguridad Alimentaria Mexicana (SEGALMEX). By the end of the year, the economic impact of the sector is anticipated to reach MX$3.4 billion (US$195.6 million), an uptick of MX$183 million (US$10.5 million) in comparison to 2022. By year end, SADER aims to purchase 521.1 million L of milk and strengthen domestic production, especially among small-scale producers. To incentivize increased production output, SEGALMEX will offer a guaranteed price of MX$10.6/L (US$.61/L) to dairy farmers. 

The minister recognized the work of the National Service for Agri-Food Health, Safety and Quality (SENASICA) in strengthening health and safety measures in the sector. He acknowledged that, currently, 12.9% of the country is recognized as brucellosis-free and in the eradication phase of tuberculosis (86.2%). He also noted that 48.2% of the national territory has been recognized by the US Department of Agriculture (USDA) as having a low incidence of this disease in cattle.

The quality of Mexican milk has the potential to boost the exportation of dairy products abroad, underscored Villalobos. He stressed that the dairy sector is a fundamental pillar for the country's food security and called on the different levels of government to work together with a bioeconomic approach to strengthen this industry. 

Ricardo Arturo Villavicencio, President, National Chamber of Milk Industry (CANILEC), stated that as part of a national and global strategy, programs and actions will be implemented for the promotion, consumption and marketing of milk. Meanwhile, María del Refugio Camarena, President, Livestock Commission of the Chamber of Deputies, pointed out that the dairy sector has been a vital partner in transforming and enhancing the quality of nutritious and healthy dairy products, bolstering consumer confidence and purchase rates.

Homero García, President, National Confederation of Livestock Organizations (CNOG), emphasized the dynamism of the dairy sector as a supplier of healthy foods, composed of small and medium-sized producers and stakeholders across the milk production chain. Additionally, he recognized Liconsa as a cornerstone for marketing in support of small producers and called for strengthening sustainability through productive practices that contribute to food security.