50 percent of Craft Beer Producers Could Go Bankrupt

The Ministry of Agriculture and Rural Development (SADER) is working to build collaborative mechanisms to ensure food security during this contingency. The Mexico-based International Center for the Improvement of Maize and Wheat (CIMMYT), in particular, has been identified as a key partner to strengthen Mexico's food security.

The pandemic could be devastating for several producers as their production halts. Particularly in the beer sector, the outlook is dark. The government is being asked to ensure contract commitments will be honored.

Ready for more? Here are the week’s most pressing headlines!

Covid-19 Contingency and Government Announcements

The Ministry of Agriculture and Rural Development is responding to calls by global leaders to ensure food availability during the COVID-19 crisis. It points to ongoing collaboration with the International Center for the Improvement of Maize and Wheat (CIMMYT), which aims to strengthen agriculture resilience.

The Minister of Agriculture and Rural Development, Víctor Villalobos Arambulo, has stated that mechanisms must be established to ensure food availability in urban peripheries and rural areas. Suggestions of mechanisms he made are pantries and food stamps. These strategies could be deployed during Phase 3 of the contingency.

The Ministry is reviewing the production and supply chain of animal protein, both livestock and fish, to ensure that demand can be met through the various points of sales in the country.

The Ministry has issued recommendations to prevent and detect transmission of COVID-19 in animals. In some countries, isolated cases have taken place of human-to-pet transmission.

Lastly, the Ministry will continue to take the necessary measures to guarantee the application, in a timely manner and within the scope of its responsibilities, of the provisions issued by the General Health Council to respond to the emergency brought by COVID-19.

The Agency for Mexican food security, SEGALMEX, has published an amendment to the Guaranteed Price program to guarantee support for medium-sized corn producers in Sinaloa, Sonora, Tamaulipas and Chihuahua.

COVID-19 and Other News

The General Directorate for the Promotion of Agriculture (a SADER subsidiary) has communicated with the Chamber of the Beer and Malt Industry to guarantee, as far as possible, the supply and agreed purchase commitments. This is not an authorization for the brewing industry to maintain or resume production.

A little more than the almost 1,000 companies that produce craft beer could disappear if the contingency continues, according to estimates by Mexico’s Association of Craft Brewers.This scenario calculates a contingency of four months. The average time before filing for bankruptcy, among craft brewers, is said to be 4.1 months.

The Regional Livestock Union of the State of Jalisco has warned that the Jalisco production company intends to defer payment to small producers by up to a month. The state of Jalisco contributes 20 percent of the national milk production with a participation of between 6 and 6.4 million liters per day, depending on the time of year. Deferring payments could threaten production, and the supply of milk to LICONSA’s strategic storage locations.  

Science and Development

The National Commission for Arid Zones (CONAZA) is developing comprehensive agricultural production projects to benefit residents of arid and semi-arid areas. The schemes promote reforestation with native plants and the management of rainwater for the production of edible plants.

A scientific publication details the contribution of the MasAgro program to world agriculture. One particular highlight are the studies conducted by CIMMYT researchers related to the agricultural machinery in the MasAgro program and the strategies that are employed to generate greater access to agricultural mechanization for producers.

Other

The Campesino, Indigenous and Afro-Mexican Movement "Plan de Ayala Siglo XXI" (MCIAPASXXI) has called for a National Finance Agency that could issue credit to support primary production, agribusiness and trade.