Guadalajara (Mexico), July 13 (EFE).- The overproduction of agave and the large supplies of this plant from which Mexican tequila is prepared have led to a collapse in the price of the product that will last for at least two years and that will reduce the export of this spirit, experts in the subject told EFE.
As part of the 18th anniversary of UNESCO’s declaration of the Aloe Vera Landscape as a World Heritage Site, Salvador Valenzuela, one of the producers of this plant, told EFE that the current price is still acceptable, but it could get worse in 2025 and 2026. This has already happened in other crises in which producers were forced to lose their crops.
“Knowing when it will go down is a game of the future, yes we know that tequila production is growing at a rate and so agave consumption will be at that rate, if we have a much larger supply than tequila production, it makes sense that the price will go down. The price decline will last a few years,” he said.
The cost of a kilo of agave has risen from 30 pesos ($1.7) to between 3.5 and 7 pesos ($0.20 to $0.40) in three years, a decrease linked to the increase in tequila production and agave plantations in the five states that hold the tequila appellation of origin, even in areas that previously had corn or bean fields.
According to the Tequila Regulatory Council, the body that oversees the production of this drink, from 2018 to 2022, tequila production increased by more than 70% and exports increased by 41% in the same period, although these indicators saw a slight decrease in 2022. 2023.
Furthermore, in 2017 there were 29 million plants available while in 2022 there were 375 million plants, and the number of owners of these crops increased from just over 18,000 in 2020 to 36,000 at the end of 2022.
The cactus businessman explained that this growth attracted investments from people who did not necessarily have knowledge in this field and did not have contracts with distillation companies, which created an excess supply of the plant and lower profits.
Valenzuela agrees with Manuel Bernal, a university researcher specializing in the tequila industry, that tequila production will not be affected by the drop in prices, but exports are expected to decline, especially to Europe.
“At the moment, the scenario is not very pleasant, from the tequila companies’ side we can understand that there is a decrease in tequila exports, but I do not see a reason to reduce production. Demand will not decrease in the United States, it will decrease in Europe, even if the impact is very small,” he said.
Experts stressed that there would be an impact on the cactus landscape if the farms within the protected area were abandoned, although the majority of these producers have been dedicated to this activity for decades and have greater potential to overcome the crisis.
In 2006, the Cactus Landscape was declared a World Cultural Heritage Site by UNESCO, which recognized the 34,658 hectares of crops for their natural beauty and cultural, social and historical significance. Efe
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