A recent USDA GAIN report shows that core and food inflation in Mexico is high, but the foreign service officer at this post thinks that both dairy production and imports will rise in 2023.
Milk and cheese production in Mexico is expected to go up in 2023 because more money will be put into dairy farms in key producing areas.
Post predicts that cheese and butter imports will go up in 2023 because urban consumers and hotels, restaurants, and other institutions will buy more of them.
Mexico can’t make more milk powder because there isn’t enough infrastructure to dry out liquid milk. Imports of dry whole milk powder and skim milk powder, especially from the United States, are still strong and are expected to grow in 2023.
(T1, D1)
