October 24, 2014

Both Mexico’s dairy production and consumption are expected to increase in 2015 which will likely cause shifts in trade scenarios that will need to be dealt with by U.S. exporters according to the report “Mexico: Dairy and Products Annual” issued by the U.S. Foreign Agricultural Service.  Dairy production for the Mexican industry is forecast to increase to 11.71 million tons for 2015 based on domestic herd recovery, lower feed costs, more advanced production practices conducted by vertically integrated producers, and better yields from genetically better cows.  Better availability of water, grain, and pastures will also prompt both the high-end technologically advanced producers in the north of the country and the pasture-based producers in the south to expand production.  Consumption of value-added dairy products by middle and upper-income consumers is expected to remain sustained with consumption of milk and cheese increasing, as consumption and imports of whole milk powder are expected to decline.  Total fluid milk consumption for 2015 is expected to be 11.74 million tons – up slightly from 2014 and consistent with production estimates.

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