Liconsa Cuts Milk Purchases in Chihuahua by 40%, Pressuring Small Dairy Farms
Liconsa has reduced authorized milk-delivery quotas by 40% in south-central Chihuahua, leaving dairy farms with surplus raw milk and limited storage. Producers are selling rejected volumes for 7-8.50 pesos per liter, compared with the program’s guaranteed price of 11.50 pesos.
Delivery quotas reduced across the dairy basin
Liconsa, operating through the Leche para el Bienestar program, has told dairy farmers in south-central Chihuahua that their authorized milk-delivery quotas will be reduced by 40%. Producers in Meoqui, Delicias, Saucillo and Camargo said the measure was introduced without prior technical notice or consultation with local industry associations, according to a report originating from Quadratín Chihuahua.
The state-backed program pays a guaranteed price of 11.50 pesos per liter. Its decision removes an important outlet for farms that planned production, storage and feed purchases around regular government collection. Farmers are now seeking the restoration of their quotas and faster electronic payments from the state-owned buyer.
Cold-storage limits increase the risk of losses
The affected farms include family operations with between ten and 50 producing cows, as well as units using mechanical milking systems and refrigerated tanks. On-farm storage generally holds between 48 and 72 hours of continuous milk production. With collection centers rejecting four out of every ten liters, producers said tanks can reach capacity in less than two working days.
Farmers cannot simply suspend milking while they wait for another buyer. Stopping milk removal can cause acute mastitis and reduce subsequent output, the report said. Farms have therefore continued morning and evening milking while facing the possibility of discarding fresh milk or allowing it to spoil. The region’s rapid-cooling equipment keeps milk at about four degrees Celsius, but refrigeration only provides a limited window for finding another sales channel.
Alternative buyers offer substantially lower prices
Milk rejected by the government channel is being offered to small cheese makers and local intermediaries. Farmers reported prices of 7-8.50 pesos per liter in these transactions, a discount of 3-4.50 pesos from the program’s guaranteed price. Private processors in Chihuahua have not absorbed the additional supply, leaving smaller farms particularly dependent on informal buyers.
The quota reduction comes as drought has already increased farms’ reliance on purchased alfalfa hay, corn silage and energy concentrates. Feed represents 65%-72% of the cost of producing a liter of milk in a confined dairy operation. Producers said losing the government outlet for 40% of their current volume has depleted working capital and disrupted credit arrangements with local feed distributors. Accumulated debts and payment delays lasting several weeks have added to the pressure.
Farmer organizations have requested an urgent technical meeting with agricultural officials and program administrators to examine purchasing budgets and resume full collection from registered farms. Sector representatives said they could organize extraordinary meetings and peaceful demonstrations outside collection facilities if the reduction continues. The immediate issue is not only the lower price available elsewhere, but the speed at which a perishable daily output must be redirected before farms run out of refrigerated capacity.
