Drought in northern Veracruz, Mexico, has led to a significant drop in milk production, resulting in a first in 20 years crisis for the cheese industry. This crisis is primarily due to the significant increase in the cost of inputs such as milk, bags for packaging cheese, salt, rennet, gas for processing, and plastic rings, rather than a lack of milk. The price of fresh milk has increased from 6.50 pesos to 9 pesos per liter, and the cost of dairy products like fresh cheese, Oaxaca cheese, cream, cottage cheese, and bags for packaging cheese have also surged. The high costs are affecting the ability to maintain employees, with the producer interviewed noting the challenging economic climate and high unemployment rates in the country.