Mexican sugar mill bankruptcies

In early July 2026, the Ingenio San Francisco Ameca sugar mill entered bankruptcy, the first high‑profile insolvency in Mexico’s sugar sector. A month later, Ingenio San Pedro in Veracruz was declared bankrupt, leaving thousands of cane producers, cutters, mill workers and transporters uncertain about wages, jobs and the fate of harvested cane. Labor representatives and producers criticised the lack of a relocation plan and called for legal action and government intervention.

In early August 2026, the San Pedro mill announced a definitive shutdown, citing economic inviability. The closure threatens roughly 7,000 jobs across Lerdo de Tejada and neighboring municipalities and is expected to generate losses exceeding one billion pesos. Union leaders have sought meetings with President Claudia Sheinbaum and Governor Rocío Nahle, who announced dialogue with mill representatives and are exploring subsidies and financing through Nacional Financiera to keep the plant operating. Producers have filed legal actions to secure pending payments, liquidate cane stocks and consider complaints to the state prosecutor.