Tequila blues
As if the rising price of gas isn’t bad enough, the price of tequila may be going up, too. Mexican land which once grew agave is being converted to corn production to feed the hunger for ethanol in the US, leading to a tequila shortage which may drive up prices.
From MSNBC:
Production of agave, from the lily family, soared in recent years as farmers cashed in on record prices brought about by a shortage of the plant at the start of the decade.
Despite rapid growth in tequila drinking, especially overseas, the over-supply of agave has driven prices for the plant to rock-bottom levels.
Many growers have started to abandon the crop in favor of corn, whose price has rocketed in line with massive growth in U.S. demand for ethanol after President Bush outlined targets last year to use the corn-based fuel as a gasoline alternative.
Agave supply is also being hit this year by disease in the fields, partly due to farmers caring less for the plants after prices dropped.
“The problem that we are going to see, perhaps by mid-2008, is that a lot of agave is sick,” Agriculture Ministry official Arnulfo del Toro said. “That will have to be taken out and production is going to drop a lot.”
Last week I paid $19.95 for a bottle of Cuervo Gold. I tried the cheaper stuff once and trust me, it didn’t end well. Even a price increase won’t drive me back to that nasty bargain liquor. It would likely have to go up quite a bit before I switch my drink of choice at home. Where I do expect to see immediate increases is in bars and restaurants. My favorite little hole-in-the-wall Mexican place serves a shot of Cuervo for $3.50, $4.50 for a margarita. I expect to see that go up a buck or more if a cutback in supply drives up wholesale prices.
When I’m paying $3.30 for a gallon of gas, I should at least be able to afford tequila to make the expense easier to swallow. Corn. Humph. Whatever happened to priorities?

