Tequila hangover for Mexicans who bet the farm on growing agave as prices plunge amid glut
The tequila boom, fueled by celebrity endorsements and soaring exports, has paradoxically led to a price slump for agave farmers in Mexico. Tequila exports have surged in recent years, reaching a record 402 million liters last year, driven by demand from countries like the United States, Germany, and China. This rapid growth initially caused an agave shortage, pushing prices up to 35 pesos per kilo.
However, the increased demand prompted many farmers to plant more agave, resulting in a supply glut and subsequent price drop. Francisco Javier Guzman, head of the Barzon Agavero organization, representing about 5,000 traditional agave producers, highlights the challenges faced by these farmers as they grapple with the economic consequences of the tequila industry's fluctuating fortunes.
via SCMP Full Text Feed
The tequila boom, fueled by celebrity endorsements and soaring exports, has paradoxically led to a price slump for agave farmers in Mexico. Tequila exports have surged in recent years, reaching a record 402 million liters last year, driven by demand from countries like the United States, Germany, and China. This rapid growth initially caused an agave shortage, pushing prices up to 35 pesos per kilo.
However, the increased demand prompted many farmers to plant more agave, resulting in a supply glut and subsequent price drop. Francisco Javier Guzman, head of the Barzon Agavero organization, representing about 5,000 traditional agave producers, highlights the challenges faced by these farmers as they grapple with the economic consequences of the tequila industry's fluctuating fortunes.
via SCMP Full Text Feed
