The value network of an organization of dairy cattle producers in the municipality of Xico, Veracruz, Mexico


Diego A. García-Rodríguez
Ponciano Pérez-Hernández
Lucrecia Arellano-Gámez
Silvia López-Ortiz
Jorge Aguilar-Ávila


Value network, key actors, union organization, productive chain, associativity.


Objective: To characterize the producers and the dairy cattle value network in the municipality of Xico, Veracruz, Mexico, through interviews with key actors with the aim of analyzing the problem and identifying areas of opportunity that improve the competitiveness of ranchers.

Design/methodology/approach: Interviews were conducted with n=30 ranchers selected by targeted and snowball sampling. Semi-structured interviews were conducted with key actors. The documentary information was reviewed, resulting in the identification of the profile of the producers and the structure of the value network.

Results: Dairy producers in Xico are the third generation devoted to this activity. They are small- (83%) and medium-sized (17%) ranchers. They are 56.0 ± 12.1 years old and have 30.0 ± 15.1 years of experience. They have 55.0 ± 33.8 animals and produce 241 ± 156.8 L day-1. Fifty-seven percent have mechanical milking and cooling equipment. They sell their product to Nestlé and Liconsa, regional cheese factories, and directly to consumers within the municipality. The producers constantly interact with the Asociación Ganadera Local de Xico (AGLX) for matters related to cattle management and input purchase.

Limitations/implications: If the regional activity is to be maintained, the generational replacement must be prepared.

Findings/Conclusions: The producers have the experience, calling, resources, and infrastructure to produce and sell milk, mainly to Nestlé and Liconsa. The AGLX is the hub of the network and can promote dairy activity to generate benefits for the actors of the value chain and network.

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