Background on the Issue
The Tequila industry is facing a significant challenge due to an impending oversupply of the agave plant, which is used to produce tequila. The Mexican political party Morena recently proposed a new law, the “Ley de Desarrollo Sustentable del Agave” (Sustainable Agave Development Law), aiming to address this issue. However, the proposal has raised concerns from Ramón González Figueroa, Director of the Consejo Regulador del Tequila (CRT), who believes that the law is unconstitutional and does not effectively resolve the problem.
The Proposed Law and Its Implications
Morena’s proposed law intends to impose certain obligations on the CRT, an association of tequila producers. These duties include creating sales forecasts, conducting audits and inventory controls, and compiling producer censuses. González Figueroa acknowledges the good intentions behind the proposal but expresses concern about potential constitutional violations and negative impacts on the private sector.
CRT’s Perspective on Addressing the Oversupply Issue
González Figueroa anticipates that the agave oversupply will become apparent in the coming year. He emphasizes the need for collaboration among all stakeholders in the agave-tequila production chain, federal and state authorities, to find solutions such as exploring new agave uses and opening new tequila markets.
Potential Solutions
- New Markets: The CRT director suggests focusing on identifying new markets to increase tequila sales rather than addressing the oversupply of agave.
- Government Support: He highlights the importance of federal and state government support in negotiating reduced tariffs with countries like India and China to minimize the oversupply problem.
- Alternative Uses: González Figueroa mentions the potential for producing biofuels and bioturbosina using agave Azul Tequilana Weber, thus diversifying the use of this raw material.
“Agaveros” Detached from Farming
González Figueroa points out a concerning trend in the tequila industry: historically, there were around 8,000 agave producers. Today, the number has grown to 43,000, with many newcomers lacking farming knowledge. This shift has led to a disconnect between these “agaveros” and the fields, with over 30,000 individuals never having been linked to agriculture.
The CRT director explains that the market cannot sustain the current number of tequila producers, as the annual requirement is 100 million agave plants, sometimes exceeding 400 million. He stresses that while it’s impossible to prevent individuals from engaging in this legal activity, the private sector cannot be forced to consume all the agave produced.
Concerns Regarding Proposed Solutions
González Figueroa warns that some proposed solutions originate from individuals who have benefited from agave growers. These individuals, often intermediaries or “coyotes,” require careful examination to ensure a more organized market.
Key Questions and Answers
- What is the issue at hand? The tequila industry faces an oversupply of agave plants, which could lead to excess raw materials and financial losses for producers.
- What is Morena’s proposed solution? The “Ley de Desarrollo Sustentable del Agave” aims to impose obligations on the CRT, such as creating sales forecasts and conducting audits.
- Why is the proposed law controversial? Ramón González Figueroa, CRT Director, believes the law is unconstitutional and may negatively impact the private sector.
- What are potential solutions to the oversupply problem? Explore new markets, seek government support in reducing tariffs, and investigate alternative uses for agave.
- What is the current situation with agave producers? There has been a significant increase in tequila producers, many of whom lack farming knowledge and are disconnected from agricultural activities.
