To improve milk production in Mexico, the Margarita project is creating a small farmers’ network and consolidating a sustainable business model that incorporates cooperative value and helps farmers develop their operations.
Mexico is suffering from a 35 % milk deficit while many small producers live in precarious conditions and are exploited by intermediaries, which distorts milk prices. Meanwhile, Danone Mexico’s Dairy Business Unit has grown significantly in recent years, and Danone wants to incorporate new sourcing models into its strategic plan to secure milk supply in this market. Danone Ecosystem Fund, Danone Mexico and its local partner Technoserve joined forces with the Government of Mexico to co-create the Margarita project, aimed at improving milk production in Mexico. The project trains farm technicians at Mexico’s top university, UNAM, and together with the Union of Cattle Farmers creates a network of smallholder farmers, consolidating an organizational model with cooperative values. By also providing farmers with access to credit and government support, the project supports small farmers in developing and growing their businesses.
At the same time as contributing to Danone Mexico’s goals of supporting the development of milk production to secure and diversify its milk sourcing, this project supports rural development and empowers small producers to sustainably improve their incomes and quality of life.
Farmers benefiting from better working conditions