Mexico is U.S. Dairy’s Most Reliable Customer

America’s dairy exports to Mexico are approaching record levels as consumer demand for dairy products continues to outpace the country’s production. Mexico is the leading market for U.S. dairy products, comprising over one-fourth of international sales. Dairy product consumption in Mexico has increased by 50 pounds per capita since 2011. A new CoBank report says the upside potential for increasing U.S. dairy sales to Mexico remains strong, and broader export market opportunities are positioning the U.S. dairy industry for long-term growth. “Dairy product sales to Mexico have the potential for continued growth as more consumers enter the middle class and seek higher-quality proteins and fats,” says Corey Geiger, lead dairy economist for CoBank. “Mexico faces an annual dairy product deficit ranging between 25-30 percent, and the U.S. supplies over 80 percent of the shortfall.” The EU and New Zealand are the top two dairy exporters, but production stalled in those regions.