From George Clooney to LeBron James, American celebrities have cashed in on tequila’s soaring popularity. But in Mexico, producers of the agave plant used to make the country’s most famous liquor are nursing a nasty hangover.
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Instead of bringing a long period of prosperity for farmers of the spiky succulent, the tequila boom has created a supply glut that sent agave prices slumping.
Mexican tequila exports surged from 224 million litres in 2018 to a record 402 million last year, according to the Tequila Regulatory Council, which oversees qualification for the internationally recognised denomination of origin label.
The United States, Germany, Spain, Canada, France, the United Kingdom, China, Australia, Colombia and Japan are the world’s top 10 consumers of the spirit.
Fast-rising demand initially led to a shortage of agave, forcing tequila producers to pay 35 pesos (US$1.70) per kilo, said Francisco Javier Guzman, head of the Barzon Agavero organisation of about 5,000 traditional agave producers.
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