Agave Farmers Flood the Streets of Mexico in Protest of Allegedly ‘Corrupt’ Tequila Regulatory Authorities

Tequila Regulatory Council headquarters in Zapopan, Jalisco. (Photo: Consejo Regulador del Tequila)

Last week, Lider Empresarial reported that agave farmers took to the streets of Jalisco, Mexico, in protest of tequila regulatory authorities. The protestors demanded higher wages, transparency and the creation of a new tequila certification body to oversee the country’s spirits industry. Outlets have reported the demonstration’s size between 150 to over 3,000 protestors.

Protestors claim that the policies of the Tequila Regulatory Council have done nothing to protect the 40,000 agave-growing families in Jalisco living in poverty. As tequila’s popularity in the U.S. climbs year over year, protestors say the lion’s share of profits are being funneled to a small handful of producers who are undermining the quality and availability of agave.

Protestors blocking vehicles on the Guadalajara-Tequila highway laid out a five-point petition, per Meganoticias. Demands included a minimum sale price on agave of between 15 to 22 ($0.78 to $1.06) pesos per kilo, an agricultural designation of origin and an updating of NOM-006-2012, a policy that allows for the harvesting of underripe agaves.

According to Lider Empresarial, the protestors’ main demand is the creation of a wholly new tequila certification body.

Since its founding in 1994, the CRT has operated as a private, non-profit organization accredited by the Mexican government. In addition to protecting tequila’s designation of origin, the CRT is tasked with overseeing quality control and enforcing guidelines for the spirit’s production. Though the CRT is the sole arbiter of the tequila industry in Mexico, it is not, legally speaking, the only entity that could be granted oversight.

Remberto Galván, legal representative for the Mexican Agave Council, alleged that the CRT is a “corrupt monopoly,” per Lider Empresarial.  According to Galván, the CRT is promoting “huachicol” (Spanish for “adulterated liquor”) by allowing the cold mixing of tequila with sugarcane alcohol. If true, the technique would not only undermine the quality of the product but also depreciate demand for Blue Weber agave, the core ingredient in the spirit.

In an email response, the CRT said Mr. Galván’s accusations lack evidence. The organization insists that it is subject to “regular audits by relevant authorities, which consistently verify the traceability, impartiality, and technical expertise of our operations.” The CRT adds that “accusations of corruption against an industry that has grown through the collaborative efforts of numerous stakeholders are deeply concerning.”

Other issues lie beyond the alleged authority of the CRT. Just a few years ago, Blue Weber agave prices in Jalisco reportedly reached as high as 30 pesos ($1.44) per kilo. Those prices have now plateaued at around 10 pesos ($0.48).

Within the industry, the vast majority of agave used for distillation is purchased from third parties. Though tequila brands tend to provide some from their own fields, agave is generally sourced from farmers who exist within a competitive ecosystem. In practice, this has led to a “race to the bottom” as younger agaves are sold at lower prices. Cost-cutting production methods like the diffuser have compounded the issue, allowing industry regulars to produce more tequila using less and less actual agave.