By Jessica Jumaway
Mexico is solidifying its position as one of the most important markets for US dairy exports, showcasing the strength of the trade relationship between the two countries. This growing partnership is driving opportunities for agricultural trade and fostering mutual economic benefits.
Currently, Mexico purchases more than 25 percent of US dairy exports, representing 4.5 percent of total milk production. While milk production in Mexico has grown consistently since 2011, it has not kept up with the rising consumer demand for dairy products. This creates an important opportunity for US exporters to meet Mexico’s increasing need for high-quality dairy goods.
The US dairy industry has responded to these demands by investing eight billion dollars in new processing facilities that will significantly increase capacity by mid-2025. These expansions are expected to handle an additional 20 million pounds of milk daily, with exports playing a major role in ensuring these products reach international markets.
Free trade agreements have been instrumental in facilitating this growth. Since the implementation of the North American Free Trade Agreement and its successor, the United States-Mexico-Canada Agreement, US dairy exports to Mexico have grown exponentially. From 211 million dollars in 1994 to over 2 billion dollars in 2022, this remarkable progress underscores the value of open and cooperative trade policies.
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