November 4, 2015
Mexican demand for specialised dairy products expanding
While Mexico is expected to see a 1.5% increase in milk production next year, domestic consumption is decreasing, the USDA said.
Demand for specialised dairy products is, however, growing, according to the latest report on Mexican dairyreleased on October 27 by the USDA Foreign Agricultural Service Thus, it added, more fluid milk is being directed to processing use.
The report said fluid milk production next year is forecast to reach 12.01 million metric tonnes, up 1.5% from the revised 2015 estimate due mainly to improved genetics and technology that continue to result in the rise in Mexican milk production.
Total fluid milk consumption by both domestic consumers and industrial factories in 2016 is forecast to also increase 1.5% to 12.04 million metric tonnes from the 2015 USDA estimate, based on anticipated slightly higher production levels. However, the USDA cites sources that confirm domestic consumption of fluid milk is decreasing. "The MY [marketing year] 2015 total fluid milk consumption estimate is revised upward as the increased demand by the industry (factory use to prepare value-added products) has grown while keeping domestic fluid milk consumption in check", it said.
The new 2016 import forecast is 42,000 metric tonnes, similar to the revised MY2015 estimate, based on the forecasted increase in domestic production and stable demand from the processing industry.
Fluid milk export forecast for 2016 is 12,000 metric tonnes, as sustained demand from the industry reduces product availability for export, especially given less attractive international prices, the report said.
The report added that Mexico continues to be one of the largest destinations for imported dairy products--including dairy ingredients, fluid milk, cheese, yogurt, and frozen dairy desserts--with the US as its largest supplier. --Rick Alberto