It’s a drink that couldn’t be more Mexican, tequila, emblem of the country and the Jalisco region, in western Mexico. Made from blue agave, this alcohol is very popular, especially in the United States and Canada. Since the 1990s, its consumption has increased significantly to the point that today, Mexico exports 80% of its national production through major brands that have taken advantage of North American economic treaties. But behind these consumption patterns lies the ruin of the producers. Located at the end of the chain, they are the ones experiencing market crises.
From our correspondent returning from Tequila,Â
Global demand for alcoholic beverages is tending to decline, while the ultra-industrialized tequila industry is going through a stage of overproduction linked to the particular conditions of agave cultivation. For months, the plant sold to distilleries has been worthless, the price has collapsed by 98%. While the big tequila houses continue to sell bottles and promote the product to tourists, it is the producers of Jalisco – or agaveros – who pay the price.
In the village of Tequila, tourism is the other main activity. Every day, the Casa Sauzalike a hundred other factories, opens its doors to visitors.Of all the agaves you see, only the blue variety can produce tequila, explains Marisol. This is the standard we must meet. » Une fois mature, le cÅ“ur de l’agave, qui sert à la fabrication, pèse 30 kilos. «ÂFor each ton harvested, agricultural workers, called “jimador”, are paid between 15 and 20 euros », poursuit Marisol.
The region produces approximately 500 million liters of tequila annually, a market worth more than $13 billion.
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A poor return on investment
At the end of the chain, producers like Saul Martinez sell their plants to large distilleries. Since 2019, he has planted 13,000 agaves, which should bring him between 750 and 1,500 euros. “It’s not much “, he laments, and it is much less than his initial investment. Not counting the years of work, because the plant grows for 6 or 7 years before rotting.Â
Current overproduction is causing prices to fall. HAS” It’s all cyclical. Maybe in a few years the price will be much better. Here, it’s full of agaves, shows the producer, I went from here to the top of the hill. The problem is that there, they plant in excess, burn and deforest to plant. »Â
« It’s the law of supply and demand »
The highly profitable tequila industry attracts speculation and passes market effects onto producers. HAS” It is the law of supply and demand, underlines Martin Muñoz Sanchez of the Tequila Regulatory Council, many investors came into the sector unchecked, and they knew nothing about agave cultivation. It’s a vicious circle. When the price increases, everyone crashes. Then the price drops and everyone loses motivation. People stop planting and that creates another shortage. We will see the impact in 6-7 years. Today, even if it seems illogical, we recommend planting agaves. »
Tequila represents 2% of spirits consumed worldwide. The sector ensures that the market will continue to grow. Meanwhile, tequila exports continue to increase, primarily to the United States and increasingly to Europe.
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