Yunuen Mora/ Reform Agency
Tuesday, May 16, 2023 | 19:24
Guadalajara Jalisco .-The president of the Association of Dough and Tortilla Manufacturers, Arturo Solano, affirmed that an increase in the price of tortillas is not expected, but that it would remain the same and could even drop.
This statement, he pointed out, is based on various conditions that indicate a downward trend in the raw material.
One of the reasons is the fall in the international price of corn, as well as the decrease in the value of the dollar. Currently, the international price of corn stands at 228 dollars per ton, while in the producing area of Sinaloa, the reference base, it is 71 pesos per kilogram.
Another of them is the guaranteed prices.
Corn and wheat producers have pointed out that the guaranteed prices set by the federal government are not enough to reflect the increase in costs, in addition to the fact that the committed purchases still leave production in the air without a buyer.
Guaranteed prices for corn and wheat are just over 5,000 pesos per ton, when producers ask for 7,000 and 8,000 pesos, respectively.
In addition, Solano mentioned that the Sinaloa and Federal governments have committed to buying 30% of Sinaloa’s production, while the other 70% faces marketing problems.
The current conditions are not favorable, and the tariffs imposed to export but not to import further complicate the situation.
For this reason, Solano hopes that negotiations will be carried out in the Mexican Food Security (Segalmex) and that they will be received in Mexico City to establish a marketing scheme.
Although the harvests will begin in approximately a month, the president of the association is confident that the current conditions will not lead to an increase in the price of tortillas.
Currently, the tortilla is sold between 22 and 27 pesos in Jalisco.
Solano argued that the current conditions favor a stabilization of prices, since it is expected to buy corn at lower prices due to the drop in international prices and the drop in the dollar.
On the other hand, Arturo Hinojosa, vice president of grains of the Jalisco Agricultural and Agroindustrial Development Council (CDAAJ), stressed that the increase in the price of tortillas will be a direct consequence of the high production costs of corn and the availability that exists.
“As the harvests begin, the availability of local grain will influence the purchase price by producers. For example, if there is not enough grain available in Jalisco and producers seek a price of 7,000 pesos per ton, it will be necessary to add the cost of freight from other regions, which will have an even greater impact on the final price,” he said.
Although if this happens, it is estimated that tortilla prices could increase between 25% and 33%, you would first have to start the planting season to know availability.
