Latest overview of Mexico’s dairy sector

In its latest annual report about Mexico’s dairy sector, the US Department of Agriculture (USDA) presents the main production, consumption, and trade figures shaping the sector. As for the cheese segment, the report estimates slow but steady growth in production and consumption, but no further growth in imports in 2022.

Dairy Mexico
Beeld: ©Unsplash

Each year the US Department of Agriculture (USDA) publishes a report about the Mexican dairy market. The 2021 edition was published recently and gives an overview of national production, consumption, imports and exports trends for milk, cheese, butter and milk powder for 2021 as well as forecasts for 2022. Of these products, cheese is the most relevant for The Netherlands. After the US, which supplies 80% of Mexico’s cheese imports, The Netherlands is the second largest supplier of cheese to the Mexican market with a market share of 9%. The main trends in the Mexican cheese segment, according to the report, are the following:

  • National cheese production is increasing steadily and is expected to grow by 1% in 2022. More and more milk producers, especially the larger industrialized operations, are looking to vertically integrate, join cooperatives, or create joint ventures. BY moving into cheese production, such producers are looking to add value and extend shelf life of their products. Mexico’s cheese production remains largely artisanal and small scale, though. Industrial cheese operations account for only a quarter of Mexico’s cheese production
  • Cheese consumption is also rising slowly but steadily and is expected to grow by 1% in 2022. This growth is mostly driven by the reopening of hotels, restaurants and the institutional sector, and not so much by household consumption, which is affected by poor macroeconomic conditions and growing inflation diminishing household purchasing power. Cheese consumption per capita in Mexico is currently only 4 kg per year (compared to over 18 kg in The Netherlands) and has room to grow. Market innovative and ready-to-go cheese products, as well as promoting cheese’s nutritious qualities, could help increase cheese consumption.
  • Cheese imports in 2021 were 8% higher than in 2020, but are not expected to increase in 2022, due to the above-mentioned economic situation. Most of the cheese imported by Mexico does not directly reach consumers, but it used as ingredients in other food products, like pizzas. Most Mexican consumers buy locally produced and more affordable cheeses.

For more insights into the Mexican dairy market, please consult the full report through the link below.