Mexico prepares plan for agave producers amid price collapse

The Mexican federal government is developing a comprehensive plan to address a crisis facing agave producers, caused by a sharp decline in prices due to overproduction and stagnant tequila demand. President Claudia Sheinbaum noted that while tequila consumption rose during the pandemic, driving increased planting, the subsequent imbalance between supply and demand has caused prices to plummet.

Sheinbaum reported that agave prices, which previously ranged between 30 and 35 pesos per kilogram, have dropped to as low as six, four, or even one peso in some areas. She also highlighted the role of intermediaries in the commercialization process. The Secretary of Agriculture, Columba López, is currently working on proposals to mitigate the impact.

Data from the 2025 Agricultural Panorama shows a 6.3 percent decrease in agave prices nationwide during 2024, with an 8.1 percent drop in Jalisco. Producers in Jalisco alone saw a reduction of 3,743 million pesos in harvest earnings. The states of Jalisco, Guanajuato, and Michoacán account for 90 percent of the country's tequila agave production.