Mexico to Expand Milk Purchases in the Domestic Market

Mexico’s state-owned milk distributor Milk for Well-Being will significantly increase its purchases of domestically produced fresh milk and expand its processing and collection infrastructure as part of its Growth Strategy 2026–2030, aiming to strengthen the national dairy sector, ensure fair commercialization for producers, and expand access to milk for vulnerable populations.

As part of the strategy, Milk for Well-Being plans to collect close to 800 million L of fresh milk annually nationwide starting in 2026, a move that would allow the program to increase the number of beneficiaries from 7,267,662 people to 10 million by 2030, an increase of 27%, according to company officials.

The program will rely exclusively on domestic supply. The Ministry of Agriculture (SADER) confirmed it will not import any powdered milk during the current six-year administration, ensuring that 100% of the milk distributed through the Social Supply Program originates from Mexican producers.

Operational capacity will also expand over the next two years. The company plans to increase the number of productive plants from 10 to 12 and open 31 new milk collection centers, bringing the total to 85 centers in operation nationwide.

A new pasteurization plant in Campeche will have the capacity to process 100,000L/d, strengthening supply in the country’s southeast. Meanwhile, a new drying plant in Michoacan will allow the purchase of up to 250,000L/d more in western Mexico.

Antonio Talamantes, Director General, Milk for Well-Being, said the strategy represents a historic increase in purchases of fresh milk from national producers and a key step to reinforce the dairy industry while expanding access to quality milk for the most vulnerable segments of the population.

The expansion comes as Mexico’s dairy industry faces declining milk consumption. Industry organizations say demand for liquid milk has fallen in recent years due to growing competition from plant-based beverages such as oat, soy and almond drinks.

According to the Dairy Cattle Executive Commission (DCEC), liquid milk consumption in Mexico declined 4.5% between 2023 and 2024, falling from 2.6 billion L to 2.5 billion L. The group added that this contraction has prompted dairy producers to step up efforts to promote milk consumption.

In response, dairy producers are working with organizations across the value chain, including the National Council of Balanced Feed and Animal Nutrition Manufacturers (Conafab) and the DCEC, to promote milk as a beverage that is a source of calcium and meets standards of quality, safety and sanitation.

The campaign aims to recover consumers who, due to misinformation, stopped or reduced their consumption of dairy products, the organizations said. Producers from Jalisco, Chihuahua and the La Laguna region are participating in the initiative.

According to SADER, per capita milk consumption in Mexico stands at 134L/year, while national milk production totals 13.3 billion L, up slightly from levels recorded more than a decade ago. However, industry groups note that consumption remains well below the 188L per person recommended by FAO.

José Luis Munguía, President, Conafab, said the organization’s commitment is to protect the health and well-being of productive species in order to achieve sustainable growth in favor of the country, underscoring the importance of affordable, safe and high-quality animal protein.

The DCEC added that Mexico must increase milk production. While output has grown at an average annual rate of 2.1%, the group said this pace is insufficient to meet demand for fluid milk, powdered milk and processed dairy products such as cheese, yogurt and butter.

Mexico ranked as the world’s 11th-largest milk producer in 2024, with 13.5 billion L, but it is also the second-largest importer globally, with 4.3Mt of milk equivalent, trailing only China. The country’s main milk-producing states are Jalisco, Coahuila, Durango, Chihuahua, Guanajuato and Veracruz.

Industry representatives underscored that the expansion of Milk for Well-Being purchasing capacity, combined with efforts to stimulate domestic consumption, could help rebalance the market and strengthen the long-term sustainability of Mexico’s dairy sector.