Mexican Tortilla Shops Face Diverging Price Pressures Amid Stable Corn Supplies

The Ministry of Agriculture and Rural Development (SADER) in Mexico reports that the country has sufficient inventories of white corn to meet demand from the tortilla industry, supporting stable tortilla prices. According to SADER, the price of a ton of corn increased by 6% over the past four weeks, equivalent to MX$400 (US$22), due to seasonal supply and demand factors.

However, industry representatives argue that rising operating costs, informal competition, changing consumer habits, and organized crime are ongoing pressures on tortilla shops. Blanca Mejía, Legal Representative of the Council for Traditional Tortilla, notes that government agreements primarily benefit business owners, resulting in low productivity among tortilla shops.

Mejía also highlights the complicated conditions faced by businesses eligible to purchase corn through the Ministry of Welfare, which can take up to 10 days to receive a response. She argues that SADER focuses only on the 6% increase in corn prices, without considering the remaining 94% of expenses involved in producing tortillas.

Homero López, President of the National Tortilla Council (CNT), estimates that direct sales at tortilla shop counters have fallen by 50% or more over the past decade. He underscores that tortillerias are transitioning toward a new business model, offering additional products to remain profitable.