
FEMSA’s OXXO convenience-store chain introduced Canasta OXXO, a household essentials range that includes dairy products priced at about 20 Mexican pesos per item, below typical supermarket prices. The article notes that intense retail price competition may squeeze dairy farmers’ margins, as feed accounts for more than 70% of production costs.
Lower retail price points and competition from milk substitutes may put pressure on domestic milk prices and farm revenues, potentially limiting producers’ cash flow and investment. Feed-cost exposure makes that margin pressure especially significant for dairy producers.
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