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?
June 1st, 2007 at 3:16 am
A prime example of the law of unintended consequences ;->.
Welcome back. Hope this post means things are going well.
But as many have said, we’ll wait patiently until you’re ready. You’re well worth waiting for.
June 1st, 2007 at 8:04 am
It’s getting better. I can’t write well, but at least ideas are appealing to me again. And thanks for waiting. It’s going to take awhile for the in depth stuff to come back.
June 1st, 2007 at 10:16 am
[...] I See Invisible People points out that the Bush administration has invoked the law of unintended consequences in its supposed push for using corn-based fuel — the price of tequila is going up! [...]
June 1st, 2007 at 1:33 pm
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.
That’s been my experience with Tequila as well (although I usually go for El Patron).
I wonder, however, at what will happen to the price of soda and food overall… if the demand for corn is going to go up, what will happen to the price of high fructose corn syrup? And will that mean that some manufacturers will actually go back to using real sugar?
I may be wrong, but I can’t help but think that high fructose corn syrup is a contributor to our nation’s obesity problem.
June 1st, 2007 at 5:02 pm
Welcome, sdh, and thanks for commenting! You raise a very interesting question - high fructose corn syrup turns up in a huge variety of products, most of which are detrimental to health. I know Coke produces a kosher version with cane sugar during Passover - I wonder if they’ll increase that line?
June 1st, 2007 at 6:17 pm
Glad I bought a big bottle that will last me at least the summer (margarita time). May I suggest a mint julep or a mojito for good summer drinks.
June 4th, 2007 at 10:08 am
Ooo, I’ve never had a mint julep. What’s in a mojito?