Becle: Agave Market Dynamics
Blue Agave Farmer
inpractise.com/articles/becle-alejandro
Blue Agave Farmer
The expert is a third-generation blue agave farmer with extensive connections in the tequila industry. His family business produces both tequila and mescal, including organic variants. As a representative for a group of local agave producers, he routinely participates in meetings with the CRT (Tequila Regulatory Council) and Agave Regulator Council (CRA).
Interview Transcript
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The farmers who are trying to consolidate or group their supply are making an effort to withhold everything unless they receive 22 pesos for it.
They (the producers) hope for 22 pesos per kilo because in the field, the middlemen or intermediaries are currently paying them between 10, 12, and 14 pesos free of handling. Then, when they get to the factory, they receive six or eight pesos on top. So, if you consider the total, it's 20 or 22, and this is the price the producers are requesting.
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What do you think the supply says about demand? Do you think it will keep prices at their current levels, or could they decrease further? Could they increase? What do you think the price of agave will do from here based on the supply?
I believe it's going to decrease. In fact, I am certain that the price will drop to the minimum.
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