The price of tequila may be heading up

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In a global marketplace, U.S. energy policy has effects on the Mexican agricultural markets. With higher demand for corn due to increased ethanol production, Mexican farmers are choosing to plant corn rather than agave.

MEXICO CITY - Mexican farmers are setting ablaze fields of blue agave, the cactus-like plant used to make the fiery spirit tequila, and resowing the land with corn as soaring U.S. ethanol demand pushes up prices.
The switch to corn will contribute to an expected scarcity of agave in coming years, with officials predicting that farmers will plant between 25 percent and 35 percent less agave this year to turn the land over to corn.
"Those growers are going after what pays best now," said Ismael Vicente Ramirez, head of agriculture at Mexico's Tequila Regulatory Council.

More at MSNBC.

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This page contains a single entry by William Polley published on May 29, 2007 7:25 PM.

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