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# Porque el incremento del precio de la tortilla?

## by jkondo on Sep 17, 2007

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## Porque el incremento del precio de la tortilla?Presentation Transcript

• Precio del Maíz Pactado en Enero 07 /1 = \$3,500 la tonelada Tortilla “ Cruda Realidad” Precio del Maíz en Junio 06 = \$1,800 \$1,700 por tonelada Precio de la Tortilla Pactado en Enero 07 = \$8.5 por kilo Precio de la Tortilla en Junio 06 = \$6.0 \$2.5 por kg 1 Kg. de Maíz 1.2 Kg. de Harina 2.0 Kg. de Tortilla 1 Kg. de Maíz 2.4 Kg. de Tortilla /1 Cribado y encostalado en el DF Impacto en el Costo de la Tortilla 1.70 2.40 = = 0.71 / Kg . Diferencia Diferencia
• What did big Ag knew? Did the government knew about how the grain market works? Surprisingly enough, no.
• Tortilla is a staple food in Mexican society. The average Mexican household consumes about 1 kg (2 lb) of tortilla daily.
• 50% of Mexico is below the poverty line, which means that their minimum wage is about \$50 pesos per day (US\$4.5).
• In the beginning of 2006, several tortilla stores around the country increased their prices to almost 150%, claiming that the rise in price of &quot;corn&quot; was the cause for the increase. In April of 2006, President Calderon accepted an offer from Big agrifood (Maseca, Cargill, etc) companies to settle the price of tortilla to \$8.5 per kilo. From last year at \$6.0, that is still almost a 30% increase.
• There are two different methods to make tortillas…For starters, 1 Kg of corn is not 1 Kg of tortilla
• If the tortillas are derived from flour..
• *1 kg of Corn does not translate to 1Kg of Tortilla, but to 1.2 Kg of corn flour after calcium is added. Once baked into tortilla, 1 Kg of corn transforms into 2 Kg of tortilla because water is added; therefore, increasing weight.
• If the tortillas are derived from corn (or nixtamal)...
• *1 kg of corn becomes 2.4 Kg of tortilla after calcium, water is added, and in difference to corn flour, is not refined and retains most of its fiber.
• There are two different methods to make tortillas…For starters, 1 Kg of corn is not 1 Kg of tortilla
• Therefore, if the price of corn from July 06' was only \$1.8 per kg, and the price of corn in January 07' was \$3.5 per kg, then the difference is an increase of \$1.7 per kg and if we divide this by \$2.4 (considering that we take out \$0.10 because of the increase in natural gas). The impact of the increase in the price of 1 kg corn should had only been \$0.71 kg of tortilla not \$2.5 kg.
• Big Ag understood the market and gave President a “solution” to this problem. Sadly, this is home economics every housewife in Mexico that bakes tortillas or buys them understand these figures perfectly.