Supply and value chain of the dairy industry in Mexico

Abstract

The dairy sector in Mexico serves as a pivotal aspect of the national agricultural economy, marked by a complex supply and value chain with significant economic contributions. This essay aims to bridge the research gap in supply and value chain practices within the Mexican dairy industry, highlighting the need for the adoption of effective and competitive supply chain strategies to ensure food safety and security and align with export market standards. The supply chain spans several crucial stages, such as milk collection, processing, packaging, distribution, and retail. While the sector holds vast potential, small-scale farmers frequently encounter barriers to market entry and struggle with limited market access. Addressing the key elements of the supply chain and value chain within the Mexican dairy industry is imperative for devising competitive strategies and enhancing food security to comply with international export standards. The industry is confronted with sustainability challenges, notably the dearth of environment-specific data and the slow pace of technology adoption, which are aggravated by the dominance of small-scale operations, infrastructural inadequacies, and the lack of supportive governmental policies. An integrated and holistic approach is crucial for enhancing the competitiveness of the Mexican dairy industry.