Up the avocado, and the meat?
The government strategy proposes that dozens of large consumer companies that joined the initiative voluntarily, such as Bimbo, Alpura and Walmart, be the ones in charge of establishing the price of the products. In addition, the Mexican government agreed to exempt import tariffs on 21 products of the basic basket and six strategic inputs to combat inflation.
The benefited products are corn oil, rice, tuna, pork, chicken meat, beef, onion, jalapeño pepper, beans, corn flour, wheat flour, egg, toilet soap, tomato, milk, lemon , white corn, apple, orange, box bread, potato, pasta for soup, sardine, sorghum, wheat and carrot.
In addition to live animals of the bovine, porcine, ovine or caprine species, roosters and chickens.
Ernesto Hermosillo, who chairs the Mexican Meat Council (Comecarne), comments that the elimination of tariffs should have a positive impact on prices. “Instead of paying a 75% tariff, when a zero tariff is set, we can turn to see countries, such as Brazil, that can supply us at competitive prices at a time when other of our natural suppliers, such as the United States, they suffer from shortages,” he explains. However, he warns that price stabilization could occur in the long term.
“What I see is that this year many variables that influence the price of the product, such as transportation or grains, continue to rise. We are still going to be suffering this year in these items and in many others,” added the manager , who explained that the general increase in production costs so far this year is 35%.
“I don’t think it’s the end,” added the leader of the organization that brings together firms such as Cargill, Grupo Bafar, Pilgrim’s, SuKarne and Sigma.
Chicken, for example, rose 2.94% in the first half of May. According to wholesale food buyers consulted by ExpansionLast year, fresh chicken was priced between 40 and 45 pesos per kilo. During May, it reached 70 pesos.
This is how Mexicans get around high prices
98% of consumers consider that their income has decreased after the pandemic, according to data from Nielsen IQ, while some products in the basic basket have rises of up to double digits, explains Zeineth Odriozola.
Even with the increases that foods such as meat, chicken or eggs present, they remain part of the basic basket of Mexicans, in addition to cereals, vegetables and fruits. Nilsen IQ shares that the purchase of the food basket, considering mass consumption products, grew above 9.5% in the last year.
But the Nielsen IQ specialist explains that, as a result of the price rise, she expects an adjustment in the type of products, the quantity and the frequency with which consumers buy. The strategies to save range from acquiring some basic own-brand supplies, to looking for promotions or buying large products that generate more value for money.