The Price of Tequila May be Affected by the Shortage of Mexico’s Agave
A slightly bad news for tequila drinkers that the shortage of Mexico’s Agave shortage may affect the price of Tequila. Last week, Reuters reported that plenty of Mexican farmers who grow Agave Tequilana cannot meet the required supply of Tequila. Tequila is a particular drink that is famous across the world and attracts thousands of tourists In Mexico from all over the world. Agava Tequilana a spikey-leaved plant that is the most important ingredient for Tequila production.
Even only in the past two years, the price of this particular plant has risen six-fold, the report said. Due to this, the profit of the distillers has become low and now there are strong fears that the cost will affect both distributors and buyers.
This shortage has brought lots of problems for both the plant growers and the Tequila drinkers. It takes around 6 to 7 years for an Agava plant to become mature and ready to give a perfect Tequila taste. But, when there is a shortage of the plant, what farmers do that they pull the plants earlier and send them for the process from bottle to margarita glass.
One of the growers in Guanajuato, Maro Polo Magdaleno said,
“They are using four-year-old plants because there aren’t any others. I can guarantee it because I have sold them,”
According to figures from the National Tequila Industry Chamber (CNIT) and Tequila Regulatory Council (CRT), there are around 140 registered companies that require the supply of 42 million agaves. But, only 17.7 million blue agaves were planted in the year of 2011 to be plucked for this year.
Price Chart:
2016 price — 3.85 peso per kilo
2017 (end of year) — 22 pesos ($1.18)
($1 = 18.7096 Mexican pesos)
Due to all these things, it has become difficult for a low rate producer of Tequila to compete with the top and high quality producers. In fact, the president of CNIT, Luis Velasco once said,
“It doesn’t make sense for tequila to be a cheap drink because agave requires a big investment,”
Facing all these circumstances, plenty of Tequila drinkers are now quenching their thirst through other liquors like whisky, vodka, rum, and others. One of the smaller producers of Tequila Cascahuim also said that it is impossible for this particular drink to complete with other spirits like whisky, vodka, and others at the price of more than 20 pesos per kilo.
Not only the small producers, but this increasing cost will also affect even the industry giants in coming years. One of the top sellers said,
“If we continue like this a lot of companies will disappear.”
The Present of the National Committee for Agave Production in Tequila, Raul Garvcia said,
“We are sure this will have a strong impact on the big firms such as Cuervo or Sauza,”
Another reason for the shortage of agave plants is that they are also being used for other products like health supplements insulin, syrup, and others. Not only this, the agave plant thieves are also making trouble for both Tequila producers and drinkers!
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