In order to overcome the deficit in Mexican milk production while promoting the work of local breeders, the project 'Margarita' aims to improve Mexican famers’ quality of life as well as their farming and environmental practices. Such target is achieved through the building of a network of dairy farmers, the purpose of which is also to strengthen their economic model, thus making their activity more sustainable. The project was founded jointly by Danone Ecosystem Fund, Danone Mexico, TechnoServe, with support from the Mexican government.
Why it matters
The development of the Mexican dairy sector has not kept pace with the growing demand from the agrifood industry—and in particular from Danone Mexico. Productivity among small farmers is low, and they sell their milk to middlemen who offer no price security and do not always honor their volume commitments, placing the economic viability of these small-scale producers at risk.
How it works
Our 'Margarita' project helps these farmers, members of the local Union of Cattle Farmers, to have greater access to services and markets and to limit the role of middlemen. 34 field technicians train farmers in best practices and provide them with personalised advice. The project also provides guidance and may stand as a security for farmers applying for loans or subsidies, allowing them to invest in quality inputs and equipments. Therefore, the project increases their eligibility to credit and improves their working conditions and quality of life. The creation of cooperatives allows farmers to sell their milk directly and to have visibility on their selling price.
How it creates value
The project helps farmers get the training and equipment they need to raise both the quantity and the quality of the milk they produce, creating milk collection centers that enable them to sell directly to customers in guaranteed volumes at guaranteed prices. This strengthens their business model, and as their profitability and margins grow, the entire community benefits.