Otro Tequila

News directly from Jalisco's famed tequila regions

Tuesday, January 09, 2007

Gov. gives money to agave growers

Agave reception

The Mexican government unveiled a plan to give agave growers 200 million pesos. The price of agave has bottomed out at around one peso per kilo for several years after reaching as high as 16 pesos per kilo in the late 1990s.

Agriculture secretary - and former Jalisco governor - Alberto Cardenas Jimenez announced the relief, but commented that the previous high price drove many growers to plant agave and attracted many speculators into the industry. Agave arriving from outside of the designated growing area - Jalisco and certain municipalities of Nayarit, Michoacan, Guanajuato and Tamaulipas - is also aggravating the situation.

Somewhat ironically, the Jalisco government's rural development secretariat forcasts the supply of agave will plunge by the end of the decade after the glut works itself out, which would, of course, put the same boom-bust cycle in motion again.

0 Comments:

Post a Comment

<< Home