Groups of sugarcane workers throughout Mexican producing regions have occupied sugar mill warehouses over the past few days in protest of low prices. These actions have been non-violent and in several cases, the warehouse exits are simply monitored to ensure departing trucks contain either sugar destined for export or sugar sold at or above the cane workers target price of 400 pesos per 50 kilogram bag.
These cane worker groups are comprised of both plantation employees and small holders who operate their own sugarcane farms.
Government authorities, cane worker unions, and industry leaders (mill owners and sugar trading firms) are meeting regularly to reach a mutually agreeable solution.
The sector plans to resurrect a sugar export promotion program operated by the private sector with government supervision. This program, known as FIDCAÑA, was created in 2008, but due to favorable prices, has not been called upon until now.
The vast majority of international sales are in the form of exports to the US, both because of typically higher US prices and because Mexican sugar prices are typically higher than international prices. Normally a surplus producer of sugar, Mexico has also at times opened import quotas to reduce domestic prices.
The quota openings during the last two years, two of which generated significant imports while the other generated none, are cited by cane growers as a main reason for the declining prices that they are currently protesting. Some analysts have predicted declining prices in Mexico, based on the large jump in sugar production projected for Mexico this year, falling sugar prices in the US.
