Saturday, September 24, 2016
 Watch For U.S. Dairy Exports To Mexico To Increase  

U.S. suppliers shipped a total of $1.4 billion in dairy products to Mexico in 2013 and steady growth is expected in 2014, according to the U.S. Dairy Export Council. 

In January, Nestlé announced plans to build a $350m infant formula factory in Ocotlán, in the west of the country. 40% of its products will be exported to Latin America and the Caribbean. 

The factory is part of wider $1bn investment from Nestlé in the country over the next five years. This includes a pet food factory and expansion of its cereal operations.

According to customs, the US held a 76% share of the Mexican dairy import market last year, and USDEC said suppliers face little competition.

Mexico has traditionally had relatively low dairy consumption, with many citizens living below the poverty line. However, dairy demand has increased over the past decade and the country relies on imports to meet demand.

Cheese, milk and dairy-based blends are particularly strong categories. The US share of Mexico’s cheese import market grew from 72% in 2012 to 77% in 2013, according to customs.

Source: United States Dairy Export Council

Posted on Thursday, April 03, 2014 (Archive on Thursday, April 10, 2014)
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