Mexico Aims to Boost Dairy Production

Mexico’s dairy industry supplies approximately 70% of domestic demand, leaving the country reliant on imports, primarily milk powder from the United States, to cover the remaining deficit. Industry stakeholders and the federal government are pursuing investments, infrastructure projects, and producer support programs to increase national milk production to 15 billion L by 2030, strengthening food security, rural employment, and agricultural competitiveness. The initiative affects dairy producers, processors, livestock organizations, food manufacturers, and agricultural supply chains across Mexico. 

Mexicans consume more sugary beverages than milk, despite nutritional recommendations calling for higher dairy intake. At the same time, Mexico remains dependent on imports to meet roughly 30% of domestic dairy demand, creating a significant trade deficit. Industry leaders are now working with the federal government to boost production, strengthen the dairy value chain, and move the country closer to self-sufficiency by 2030.

Jorge Lozano, President, National Chamber of Milk Industries (CANILEC), said Mexicans consume more soft drinks annually than milk. The industry leader revealed that the average Mexican consumes 148L of milk per year, below the 166L of sugary beverages consumed on average. “This figure remains below the 180L recommended by the FAO,” he highlighted during a press conference held in conjunction with World Milk Day, which is commemorated on June 1.

To reverse this trend, Lozano emphasized that coordinated efforts among producers, authorities, academia, and society are essential to promote nutrition education campaigns, strengthen access to quality products, and continue building consumer confidence in the nutritional benefits of milk and dairy products.

“The commemoration of World Milk Day is fundamental because it invites us to reflect on the importance of promoting healthier eating habits and strengthening a culture of consuming nutritious foods with high biological value,” he said.

Mexico is not self-sufficient in dairy production. The country currently produces 13.8 billion L of milk, satisfying approximately 70% of domestic demand. The remaining 30% is supplied through imports, primarily skim milk powder. According to the Dairy Industry Overview in Mexico 2023, developed by the Ministry of Agriculture and Rural Development (SADER), Mexico ranks fifth globally in whole milk powder imports, accounting for 2.8% of global imports. Nine out of every ten tons imported originate from the United States.

In 2023, Mexico imported 377,846t of milk powder. Furthermore, in 2025 dairy product imports reached US$3.3 billion, while exports totaled just US$693 million, resulting in a trade deficit of US$2.6 billion. The value of national dairy production stands at MX$570 billion (US$32.7 billion), according to data from the National Confederation of Livestock Organizations (CNOG).

Against this backdrop, dairy producers have committed to expanding the sector by 2030. The Executive Commission for Dairy Cattle (CEBL) has pledged to President Claudia Sheinbaum that the industry will reach an annual production of 15 billion L of milk. “At a minimum, we are talking about achieving this by 2030, and this represents the commitment of small and medium-sized livestock producers to Plan Mexico,” said Homero García, President, CNOG.

García noted that the construction of new dairy developments in Campeche is a major achievement, given the region’s suitable genetics and infrastructure, which will contribute significantly to increasing milk production for the benefit of the Mexican population. In this regard, on May 15, Mexico’s president inaugurated the new Milk for Well-Being pasteurization plant located in the Bicentennial Park of San Francisco, Campeche.

With an investment exceeding MX$130 million, the project represents a decisive step toward strengthening agri-food development throughout Mexico’s southern and southeastern regions. In addition, the program will offer the highest milk purchase price in the country at MX$11.5/L, directly benefiting small-scale producers through technical assistance, pasture improvement programs, and strategic infrastructure investments.

The new facility is equipped with state-of-the-art technology and operates under strict social and environmental responsibility standards, helping ensure dairy supply for more than 200,000 beneficiaries of the Social Supply Program in Campeche, Yucatan, and Quintana Roo.

Lozano reiterated the importance of every participant in the production chain to achieve the goals established by the current administration. In his view, the dairy sector represents a strategic activity for Mexico because it generates 600,000 direct jobs and 1 million indirect jobs, particularly in rural communities where dairy farming serves as a source of economic stability, local development, and social well-being.

“Behind every glass of milk, every cheese, yogurt, or cream product, there is an extensive value chain composed of producers, transporters, processors, distributors, and retailers who make it possible for dairy products to reach Mexican households every day,” Lozano said. He also highlighted that the dairy industry is valued at MX$570 billion and represents Mexico’s fourth most important agro-industrial activity, contributing approximately 6% of the country’s agro-industrial GDP.

At the national level, the leading milk-producing states are Jalisco with 21% of production, Coahuila with 12%, Durango with 11%, Chihuahua with 9%, Guanajuato with 7%, and Veracruz with 6%. The remaining states account for 34% of total national production, according to the Mexican Association of Milk Producers (AMALAC).

Globally, milk production has increased by more than 77% over the past three decades, rising from 524Mt in 1992 to 930Mt in 2022. Since 1970, most of the growth in dairy production has occurred in South Asia, which remains the primary driver of global dairy expansion. India leads global production with 23% of total output, followed by the United States, Pakistan, China, and Brazil, according to the FAO.

As for trade, global dairy product commerce is projected to increase over the next decade, reaching 14.2 Mt by 2032, an 11% increase compared with the 2020–2022 base period. Most of this growth is expected to be supplied by rising exports from the United States, the European Union, and New Zealand, according to the Organisation for Economic Co-operation and Development (OECD).