Business · Energy & Commodities · 3 hrs ago
Mexico prepares plan to address falling agave prices
Mexico is preparing a plan for agave growers facing falling prices and too few buyers.
President Claudia Sheinbaum said the Agriculture Ministry is working on a proposal, and she plans to meet with growers once it is ready.
During the pandemic, rising tequila consumption encouraged farmers in Jalisco and other states to plant more agave.
Supply grew as tequila demand stopped rising and then fell, leaving more agave than buyers needed.
Sheinbaum said prices that once reached 30 to 35 pesos per kilogram have fallen to around six, four or even one peso in some areas.
The glut is hurting growers and affecting the tequila industry, which says it has less capacity to buy the crop.
The industry estimates tequila sales will fall 3.5% this year, and the government proposal is the next step described by Sheinbaum.
Mexico is preparing an integrated proposal to address falling agave prices and a lack of buyers.
President Claudia Sheinbaum said the Agriculture and Rural Development Secretariat is working on the plan before meeting with agave producers.
Agave prices have fallen from 30 to 35 pesos per kilogram to around six, four or even one peso in some regions.
The supply grew after higher tequila consumption during the pandemic encouraged more planting, while tequila demand later stopped growing and declined.
The National Tequila Industry Chamber has warned that the oversupply affects producers and the wider industry.
- Who
- Mexico’s government, led on the proposal by the Agriculture and Rural Development Secretariat. The plan is intended to address the crisis facing agave producers.
- What
- The government is preparing an integrated proposal to respond to falling agave prices and a lack of buyers.
- When
- Sheinbaum announced the work on Friday, October 16, 2026.
- Where
- Mexico. The agave was planted in Jalisco and other states.
- Why
- Agave supply rose after pandemic-era tequila consumption encouraged more planting, while tequila demand later stopped growing and declined.
This story does not have two clearly opposing sides.
Rising tequila consumption encouraged more agave planting in Jalisco and other states.
Agave supply increased and prices fell.
Agave consumption rose 21.1%, from 1.8 million tonnes in 2024 to 2.18 million tonnes.
The National Tequila Industry Chamber warned that oversupply was reducing the capacity to buy agave.
Sheinbaum said the Agriculture and Rural Development Secretariat was preparing an integrated proposal before a meeting with producers.
- Agave price before the fall
- 30 to 35 pesos per kilogram
- Agave price now
- Around six, four or one peso per kilogram in some regions
- Agave consumption in 2025
- 2.18 million tonnes, up from 1.8 million tonnes in 2024
- Tequila production in 2025
- 496 million litres; 400 million litres were exported
- Tequila sales outlook for 2026
- Estimated decline of 3.5%
- States with tequila denomination of origin
- Jalisco, Guanajuato, Michoacán, Tamaulipas and Nayarit
What people are saying
the objective is to provide an integrated solution
We have a problem of an oversupply of agave, which also reduces the capacity to buy that agave. So it is an effect that reaches the entire chain