Cilantro Prices Soar Impacting Producers, Local Businesses

Cilantro prices have surged in recent months due to factors such as hail, drought, high temperatures, and pests, which have been exacerbated by climate change, as reported by producers and specialists. The price increase directly impacts local suppliers and commercial sectors such as taquerias.

Data from the Market Information and Integration System (SNIIM) shows that the price of a 5kg bundle of cilantro at the Iztapalapa central market in Mexico City has increased from MX$130 to MX$450 (US$7.05 to US$24.4). In the Ecatepec and Toluca wholesale markets, the same quantity has gone up from MX$130 to MX$350. In April 2024, the average price per kilogram was MX$19, but it has now risen to MX$89.

At the national scale, cilantro production is led by the state of Puebla, with a production of over 47,000t/year, accounting for more than 40% of the market. Other major producing states are Baja California, with 18,000t/y, followed by Aguascalientes and Sonora, each with just over 10,000t/y of production.

According to Puebla’s Ministry of Rural Development, one of the triggers for the cilantro shortage were the hailstorms presented in April and May. The recorded disasters affected more than 200 ha of crops including corn, chili, green beans, and broccoli, as well as cilantro, with preliminary estimates indicating up to 60% damage to crops, according to representatives from the National Farmer Confederation of the State.

Another significant factor in the shortage of the popular herb is the presence of pests, particularly aphids, which caused the loss of 1,000 ha of cilantro in the past two months in Puebla. Aphids stunt the growth of cilantro, causing it to dry out, turn yellow, and exhibit many deficiencies, leading to total crop loss and lower yields, explained Agustín Navarro, Producer from Tlachichuca, Puebla, in an interview with Forbes.

“Previously, cilantro producers in Puebla spent between MX$20,000 and MX$25,000 on seeds, agrochemicals, and fertilizers per hectare of cilantro. Now the cost has increased by 200%, as we are talking about investing over MX$60,000 to MX$70,000 to have one ha with a 70% cilantro production,” highlighted Navarro. 

Other producing regions like Hidalgo have been affected by drought. Data from the Drought Monitor in Mexico (MSM) published on June 5 highlight that water scarcity is at extreme to exceptional levels, leading to widespread crop and pasture losses. In Puebla, drought intensity ranges from moderate to severe, according to the same MSM. “Although many producers have a well-water irrigation system, with this heat, the leaves and stems turn yellow or do not withstand transport to supply centers. Due to the lack of water and resources, Puebla producers have opted not to plant. So, there is less cultivated area and less production until the rains come,” stated Carlos Mateos, General Coordinator, NGO Por Nuestro Campo, in an interview with El Pais.

The rise in cilantro prices directly impacts the economy of vendors in local and wholesale markets. Similarly, taquerias have been significantly affected by the price increase, as cilantro is an essential element in preparing the characteristic Mexican dish. 

Despite the shortage and rising cost of cilantro, Por Nuestro Campo does not classify the situation as an emergency, considering it temporary. However, the organization emphasizes that climate change is a significant factor that the new administration, taking office in September, should evaluate. “We request at least double the investment in water infrastructure. It is not just about building dams or pipelines. Traditional irrigation methods waste a lot of water, so precise irrigation technology needs to be implemented to support small and medium farmers,” underscored Mateos.

The Agricultural Market Consulting Group (GCMA) does not foresee a significant drop in cilantro prices in the near future, as the most recent plantings have not yet been harvested. “This increase will continue in the coming weeks until new crops can be harvested,” underscored Juan Carlos Anaya, Director, GCMA.