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Tortilla Crises in Mexico

Newspaper current event by Bortnyk on 13 February 2007, tagged as economics

Earlier this month, 75,000 marched on Mexico City to protest rising Tortilla prices. Due to an increasing demand for ethanol, corn prices have spiked over 70% in the past six months driving up the cost of Mexico City's staple food product for its poverty stricken citizens. This comes at a tumultous time in Mexican politics as the National Action Party, or PAN, seeks to avoid a return to price controls in favor of a free market economy. However, in order to lead the country through its corn crises, Mexican President Calderon would like to impose price limits for Tortillas.

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Viable alternatives by guyvia :: NR5 :: on 14 February 2007

Not to emulate Marie Antoinette, but are not flour tortillas an adequate substitute? I understand that tortillas represent the linchpin Mexican cuisine, but to regulate a market based on people's tastes seems a bit hasty.

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RE: Viable alternatives by Anonymous :: NR0 :: on 15 February 2007

What makes you think that Mexico's climate allows grain crops?

I think using food as car fuel is a big disgrace and extremely arrogant.

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RE: Viable alternatives by Bortnyk :: NR6 :: on 15 February 2007

Arrogant? How so?

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RE: Viable alternatives by guyvia :: NR5 :: on 16 February 2007

SIR-

As you are anonymous, I assume your post was meant as a troll, but in the sense of good humor, I will answer anyway:

This article is a good start. The numbers are for the mid-90's, but I think they would still be relevant enough today to prove that the Mexican climate can support the growth of grain.

Moreover, the use of sugarcane, which Mexico's climate can sustain, make Ethanol far more efficiently than corn does. By switching some of the corn used for Ethanol to sugarcane fields, Mexico could have their tortillas and drive with them too, so to speak.

As for the disgraceful arrogance - nobody is forcing the Mexicans to sell their corn for fuel. If their indifference curves change, they will value the food more than the extra income. As there are currently no other renewable fuel sources for automotive purposes (electric cars mainly pull of a grid fueled by oil), I fully support the use of bio-diesel fuel, despite some short term economic externalities. As the economies adjust to the changing demands of the market, countries like Mexico that are currently suffering will end up thriving as the large suppliers of the worlds new, 'green' energy.

Please, next time you decide to show your vim and vigor, please do so the right way - with facts and your name.

-Guy Via

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Corn Supply and Demand, NOT Ethanol by gheorghe :: NR5 :: on 20 February 2007

Funny how news are often twisted around. The U.S. Grains Council (USGC) and the National Corn Growers Association (NCGA) report that lower corn production in Mexico and the lack of import licenses have caused white corn shortages there.

See press releases here, and here.

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RE: Corn Supply and Demand, NOT Ethanol by Bortnyk :: NR6 :: on 26 February 2007

I couldn't find a link to it, but the El Paso/ Chihuahua radio station 99.1 has been airing Mexico Acts comercials. The long and short is that they have created distribution stations where you can buy a kilo of tortilla for 3.5 pesos. They have also created a hotline to report tortilla pricing abuse. Mexico cares about its poorest citizens and its economy.