MEXICO’S NEW AGRICULTURAL PRICE SUPPORT PROGRAM STARTS WITH A WHIMPER

April 19, 2019

The Mexican government’s new price support program, launched in Zacatecas and Durango, is reportedly off to a shaky start. The program was initiated later than the long standing price support programs. As a result, for the first time many producers waited longer than usual to sell beans to participating elevators to obtain price guarantees. The Mexican industry is reportedly disappointed with the program as elevators have continued making big discounts for quality and not many have been able to comply with the new price guarantee program specs in order to qualify for the 14,500 pesos per MT. There have been a lot of complaints about this as the program is designed to help the smaller producers that do not have the means to deliver clean product.

MExico

Mexican Fall Winter Cycle Projections

 

Additionally, Mexican producers are reportedly frustrated with the slow response from SEGALMEX, the new food security agency created under the Lopez Obrador administration, charged with collecting the beans from the elevators. To date in Zacatecas, they have not done so and as a result, beans are piling up in warehouses that can’t take any more inventory. Some producers are looking for other elevators to deliver to or are waiting for the government to empty those volumes so they can finally deliver to those warehouses. On a separate note, Mexico’s fall/winter harvest has concluded but final numbers are not out yet, we are reporting on our projections above.
Posted in: Bean Bulletin