Abstract

BRAMBILA-PAZ, J. Jesús; MORA-FLORES, Saturnino; ROJAS-ROJAS, M. Magdalena  and  PEREZ-CERECEDO, Verónica. Minimum price for milk primary producers to reduce dairy imports in México. Agrociencia [online]. 2013, vol.47, n.5, pp.511-522. ISSN 2521-9766.

The countries that have increased their milk production above average growth is because they have paid dairy producers a minimum long-term price, which is above the market price; this has meant encouraging the horizontal and vertical integration of producers. The aim of this study was to determine the minimum price that ought to be paid to dairy producers in México, so that in the long term, dependence on milk imports is reduced without increasing price to consumers. The information analyzed was obtained from national and international sources and 20 interviews with producers. The minimum price in 2009 for primary producers was $ 6.44 per liter of milk. It is proposed that the structure of production of 50, 21 and 29 % by intensive system, semi-intensive system and family, change to 71, 15 and 14 %, respectively. With this productive structure, dairy producers would increase their bargaining power and allow them to obtain a larger share of the price paid by the consumer. The minimum producer price can increase without necessarily raising the price to consumers. Milk production in México in 2009 was 10.6 billion L; with the minimum price production, it can reach 16.96 billion L in 2020, and reduce milk imports. Thus, if the production structure could eventually change, the demand made by dairy producers to other sectors would increase 67.77 % and the amount of wages would rise 58.22 % in 2020.

Keywords : supply chain; market force; marketing margin; prices.

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