Agave Scare Causes Product Cost to Rise by 200%By Elliot Bullman
Given the uncertainty generated by tequila producers, due to an alleged shortage of agave, the National Chamber of Tequila Industry (CNIT) reiterated that there is sufficient supply for annual production.
The president of the organization, Luis Velasco Fernandez, said that speculation over a shortage of agave has led to a sharp price increase of the plant this year. At the beginning of 2016 a kilo cost 4.50 but now exceeds 13 pesos.
Fernandez said that an unfounded rumor about the lack of agave for this year has caused an overproduction of tequila in existing plantations.
"There are some industrialists who believe that in the near future there will not be sufficient supply, then they are producing too much and generating an artificial demand that is causing the agave to become more expensive," he said. In this sense, he called on tequila manufacturers and producers to trust the existing supply.
The tequila industry last year used a total of 45 million agaves, resulting in a production of 196 million liters of tequila. 2017 is expected to close at 200 million liters.
Luis Velasco Fernández indicated that the export figures have increased step by step. Proof of this is that at the end of January, 14.6 million liters were sent abroad, representing an increase of 5.8% compared to the same period last year.
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