Traceability in the Mexican dairy processing industry was studied to understand drivers behind its implementation. A questionnaire was applied to 33 plants. Data were analyzed using univariate and tabulate procedures of SAS. All plants operated Hazard Analysis and Critical Control Points, ISO or other food safety system. The 85.7% of respondents had traceability operating. Motivations to implement traceability were legal responsibility, and risks/worries of product recall; the enterprise problems were lack of supplier and customer feedback, and ability to manufacture new products; among benefits were regulatory requirements met, enterprises' image and reduced product recall/withdrawal. Economic and market reasons are important for traceability systems of the Mexican dairy processing industry. PRACTICAL APPLICATIONS Given the importance of traceability in domestic and international markets, especially the quality of raw materials used in the food processing sector, this study reports the first baseline information for the Mexican dairy processing sector. The results will allow improving the traceability systems in order to have a better market positioning both in the domestic and international markets. A higher number of Mexican suppliers could be incorporated into this food chain, because the most important quality requirements to be met will be available for this group of enterprises that process dairy products. Another impact is to determine the consumer preference, and a better positioning in foreign markets that require traceability systems in dairy products.