Mexico Promotes Sugarcane Sector, Biofuel Development
Rising inflation in Mexico cut tortilla consumption by 6.9% as households shifted spending toward animal proteins (39.8% of food budgets), fruits, and vegetables, GCMA reports. Despite incomes up 12%, prices eroded purchasing power. Producers agreed to hold tortilla prices through December, fixing corn at MX\$6,000/ton under a federal program.
Rising inflation in Mexico is not only driving up food prices but also forcing households to redistribute their spending, with the tortilla losing budget share. According to the Agriculture Markets Consulting Group (GCMA), based on the 2024 National Survey of Household Income and Expenditure (ENIGH), tortilla consumption fell by 6.9%, while spending on animal proteins, fruits, and vegetables increased.
GCMA’s panel What Do We Eat Today? attributes the decline in tortilla consumption to high prices. Despite household incomes rising 12% and overall food spending increasing 6%, inflation has reduced purchasing power. In this context, animal proteins became the largest component of food expenditure, accounting for 39.8% of total spending, led by chicken, followed by beef, eggs, and pork. Middle-income families allocated more resources to these products, while some meats, including certain pork cuts, lost share. Vegetables increased by 7% percent in lower-income households and 13% in higher-income households, reflecting efforts to maintain balanced diets.
Juan Carlos Dávila, President, Great Alliance of Dough and Tortilla Industrialists, said the sector has agreed to maintain the price of tortillas until December. He explained that after multiple working sessions, it was decided not to reduce the price immediately, maintaining current levels as part of operational conditions for producers.
He also highlighted a voluntary agreement with the Ministry of Agriculture and Rural Development (SADER), fixing the price of a ton of corn at MX$6,000 (US$321) under the Food for Well-Being program. The sector includes roughly 110,000 establishments nationwide, generating about 580,000 jobs, along with 6,580 linked supermarkets, providing an additional 13,160 jobs.
Dávila also mentioned the federal proposal to integrate young beneficiaries of the Jóvenes Construyendo el Futuro (Youth Building the Future) program into the dough and tortilla industry, with the government covering their salaries. This measure is intended to stabilize prices and strengthen the production chain.
The businessman emphasized that the commitment of tortilla producers remains focused on maintaining price stability, protecting employment, and ensuring this essential food remains accessible, while working in coordination with federal and state governments to enhance productivity and sustainability.
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Source : Mexico Business News
