Mexico: Dairy and Products Annual

Mexico's dairy sector is forecast to see milk production and domestic consumption each increase by 2 percent in 2027, supported by continued efficiency gains, genetic improvements, and expanding social programs. In the cheese sector, production, consumption, and imports are all forecast to increase due to an expanding HRI (hotel, restaurant, and institutional) sector, growing disposable urban incomes, and the rapid expansion of quick-service restaurant (QSR) chains. All together, these factors are driving robust demand for both fresh regional cheeses and imported functional processed cheeses. Consumption of skim milk powder (SMP) is forecast to rebound, supporting higher powder imports from the United States to fulfill industrial formulation needs and bridge seasonal supply gaps.