The country no longer produces 10 million liters of milk powder and cheese per day, due to the high cost of milk production. The country is not guaranteed milk supply due to the “imminent” bankruptcy of thousands of producers, due to the increase in production costs in the country, which result from drought and low prices of products imported from other countries, says the National Association of Milk Producers (Anglac).
The dairy sector in the country is in a “serious crisis” due to the increase in grain and fodder for feeding cows, which have recently increased by up to 100 percent due to the drought, the association said in a statement.
The agency specifies that the production of milk powder and cheese represents 10 million liters per day that are no longer produced in Mexico, because a large number of jobs and labor for workers in the Mexican countryside are lost.
“In these moments of crisis, the government needs decisive support for livestock farmers, in order not to continue with the suffering of cows and the loss of barns, but most importantly, the creation of jobs that our country desperately needs, especially at the rural level, it is necessary to stop the import of dairy products which only help other countries to progress,” commented Vicente Gómez Cobo, president of Anglac.
Another problem the sector faces is the import of milk residues from other countries, which, according to the association, puts national dairies at a disadvantage, because the product comes at a price far below the cost of production, so milk buyers have an alternative to importing dairy products at very low prices , which makes the sector and farmers uncompetitive.
In Mexico, according to Sagarpa data, 10,700 million liters of milk are produced annually.
“In order to overcome this serious crisis, industrialists and the government should make a great effort to implement short-term, medium-term and long-term public policies that enable a fair balance between production costs and the price imposed by supply and demand. along with regulating the import of dairy products in order to strengthen the milk producers in the country,” say the Association of Producers.
Source: El Financiero