Breweries remain shuttered: ‘health minister won’t listen to reason’

As Mexico thirsts for beer and stocks in many states have all but dried up, the economic impact of the closure of breweries due to the coronavirus pandemic mounts.

Negotiations to reactivate the beer industry “are at a standstill,” admits the president of the National Agricultural Council (CNA), Bosco de la Vega Valladolid, who estimates that nearly 5 billion pesos, US $207.1 million, in federal taxes have gone uncollected and export losses each month hover around 400 million pesos, or US $16.5 million.

Despite predictions earlier this week from Ricardo Sheffield Padilla, head of the consumer protection agency Profeco, that beer production in Mexico may start up again in mid-May, the decision lies with the Ministry of Health’s Hugo López-Gatell, who de la Vega says “won’t listen to reason” as far as beer is concerned. 

Communication between the Health Ministry and the beer industry has broken down, despite an attempt by Agriculture Minister Víctor Villalobos Arámbula to serve as an intermediary between the beer industry and the Ministry of Health.

“The last answer we had was no,” de la Vega told the newspaper Milenio. “This is a violation of the law! The law allows agribusinesses to operate as essential if they are priority industries, and breweries are a priority industry.”

De la Vega estimates that around 25% of all crops grown in Mexico go to support the beer industry which employees, directly and indirectly, around 600,000 people. Beer is also the lifeblood for 800,000 corner stores where beer makes up 80% of total sales, the CNA leader argues. 

“This is bad news for producers, for industrialists, for consumers and for the government,” says de la Vega. “I just returned from Sinaloa and beer is already selling on the black market for double the price.”

In Hermosillo, Sonora, thousands of people began lining up at dawn Wednesday, waiting for hours in 45 C heat for the chance to purchase one overpriced 24-pack of beer each at 54 stores that still had stock. And Mexico’s beer shortage doesn’t look like it will let up anytime soon.

De la Vega says that the damage to the industry will be lasting. Stocks of barley are beginning to spoil, and even if the green light is given later this month to reopen, it will take time to ramp up production as the fermentation process alone takes between 30 and 60 days.  

“The breweries are going to have to start from scratch,” he lamented.

Source: Milenio (sp), El Universal (sp)

Have something to say? Paid Subscribers get all access to make & read comments.
highway construction

Overcoming a disappointing first quarter, Mexico is now one of the OECD’s top-growing economies

0
While many of the world's strongest economies — including the United States, the United Kingdom, Japan and Germany — slowed down in the second quarter, Mexico's economy grew 1.4% from April to June.
Chuburná

Construction on 14-tower tourist project on Yucatán’s coast halted on environmental grounds

0
The work halt at the development site on duneland near Chuburná Puerto, 15 kilometers from the beach town of Progreso, is temporary at this point, as more legal proceedings are to follow.
helicopters flying overhead near the State Attorney General’s Office in Mexicali on Tuesday, following an alert issued by the United States

What’s the latest on the security situation in Mexicali?

0
No major security incidents were reported in the northern border city on Tuesday or Wednesday morning. What's the current status of the United States government's recent alert?
BETA Version - Powered by Perplexity