Corn farmers demand price increases; warn of inflation

Corn producers are demanding an increase in the price paid per ton of corn from the federal government; however, this could have negative consequences for consumers, such as increased inflation, experts warn, as corn is used not only to make tortillas but also to feed cattle, poultry, and pigs, in addition to being a raw material for oils, flours, syrups, snacks, beverages, and biofuels. If its price increases, the production costs of a wide range of basic and processed products increase.

The price of a ton of corn is quoted between 4,500 and 5,000 pesos, but they want the government to support them in reaching 7,200 pesos per ton. Regardless of the economic problems or inflation in each country, in the United States and Canada the cost averages 3,091 pesos per ton, while in Brazil it stands at 5,000.

Nora Ampudia, a professor at the Universidad Panamericana, explained that the variation in corn prices across countries is due to several factors, such as government support for producers, the use of technology, productivity, and land rotation.

"In countries like the United States, they have subsidies that help reduce costs and therefore prices... and producers have more hectares to plant. In Mexico, we have small producers who practice rainfed agriculture rather than irrigated agriculture. We have water stress, and that also has a significant impact."

Meanwhile, hundreds of corn producers took to highways and freeways in 20 states on Tuesday to demand a price increase. In Jalisco, they blocked the Guadalajara-Morelia Highway at kilometer 40. They also blocked the Atotonilco Highway and the Guadalajara-Mexico Highway at the Ocotlán and La Barca toll booths, which they cleared after 24 hours following talks with federal and state government officials, who promised to set up a negotiating table.

Ricardo Hernández, one of the producer leaders, explained that they decided to release the Ocotlán toll booth and other points because the authorities promised to listen to them and reach an agreement, but warned that if their problem isn't resolved, they will reoccupy the highways, including the Guadalajara airport.

The leader of the National Peasant Confederation (CNC) in Jalisco, Eliazer Ayala, made an urgent call to the federal government to address the crisis facing the agricultural sector, caused by the dismantling of institutions such as the Mexican Food Security Agency (Segalmex) and the disappearance of support programs that had guaranteed stability for producers for years. He recalled that Andrés Manuel López Obrador promised guaranteed prices for corn, beans, rice, milk, and wheat, but that it remained just rhetoric. "The agricultural sector is abandoned."

The government, through Segalmex, announced a support program for corn producers with a guaranteed price of 5,610 pesos per ton for producers with up to five hectares, with a purchase limit of 20 tons. This support is also supplemented by 150 pesos for freight. However, producers want more.

According to the Agricultural Markets Consulting Group, the price of corn fell 10% in September; however, the price of tortillas rose 5.7%. "Among the factors: insecurity in producing areas, rising transportation costs, and the rising costs of non-agricultural inputs," he said.