Lime Producers Halt Operations Amid Organized Crime Threats

Five lime packing plants in Michoacan have been paralyzed due to a recent labor strike by workers, who are demanding security guarantees from the government to resume their activities. The strike is expected to raise the price of the fruit, affecting final consumers.

Producers in Apatzingan and Buenavista, Michoacan, have begun a strike, denouncing the lack of security, as well as extortion and threats from organized crime, which they face without any intervention from the authorities. The announcement was made on Aug. 11 through a statement published on social media by the Union of Producers, Packers, and Industrialists of Lime from the Apatzingan and Buenavista Valley. "All lime harvesting and collection activities are suspended, and we will be on a general strike until the government provides security and protection guarantees for our work and property," the statement reads.

Carlos Torres, Michoacan’s Minister of the Interior, assured that the alleged Union of Packers, does not exist and is not registered. Nonetheless, the official maintained that coordinated surveillance operations are ongoing in the region and announced that a visit to Apatzingan will be conducted to engage in direct dialogue with producers. Torres also revealed that as of Tuesday night, 70% of the lime packing plants in the municipality of Apatzingan remain closed, while the figure reaches 80% in the neighboring town of Buenavista Tomatlan, both located in the Tierra Caliente region.

Lime producers in the area stated that the increase in extortion fees, which they must pay to around three drug cartels, was the main reason for starting the strike. Until last week, producers and packing companies had to hand over MX$2/kg (US$0.11) of lime to organized crime, an amount that was raised to MX$3 this week, according to anonymous statements from producers.

A similar situation occurred in August 2023 when the same producers were forced to halt their work under similar circumstances, as reported by Excélsior. However, this time, the farmers warned that they will not resume production until the government guarantees the necessary security to work without the threat of organized crime.

Juan Carlos Anaya, Director General, Agricultural Markets Consulting Group (GCMA), highlighted that the work stoppage will have short-term implications and will be reflected in a price increase due to reduced production. "The lime market will shrink, and prices are very likely to rise, which will have a consequent impact on consumers' wallets; this will affect households and sectors that depend on this product as an input, such as the food and beverage industry," he said. Moreover, Anaya highlighted that the market shortage could lead to a scarcity of the Mexican lime variety, which is highly demanded, particularly at the national level.

Additionally, the work stoppage could have consequences for producers' work. According to Anaya, this situation could lead to temporary or permanent layoffs of agricultural workers and packers in the agro-industry. Furthermore, the continued insecurity in rural areas of Michoacan could discourage investment in the agri-food sector, not only in lime production but also in other key crops, the businessman explained.

In 2023, national lime production reached 3.2Mt, reflecting a 4.5% year-on-year increase, with a value of MX$31.2 billion, according to data from the Ministry of Agriculture and Rural Development (SADER). The central and western region of Michoacan is the largest lime producer in Mexico, with over 953,652t harvested in 2023, equivalent to 37.6% of the total production. During the same period, Veracruz produced 867,916t of lime, accounting for 20.1%. Colima ranks third with 312,047t, equivalent to 14.3% of national production.

Globally, Mexico contributes 14.4% of the total production, ranking among the Top 5 lime producing countries. The main export markets for the Mexican lime sector are the United States, the Netherlands, Germany, the United Kingdom, and France. In 2023, 705,308t were shipped to the United States, a 4.3% increase compared to the previous year. However, the volume sent to the Netherlands decreased by 65.2%, dropping from 10,121t to 3,519t, as reported by SADER.