Sudden jump in tortilla prices creates hardship for Mexicans

San Jose Mercury News ^ | 1/13/07 | Peter Orsi

[ProtectOurFreedom]

Soaring international demand for corn has caused a spike in prices for Mexico's humble tortilla, hitting the poor and forcing President Felipe Calderón's business-friendly government into an uncomfortable confrontation with powerful monopolies.

Tortilla prices jumped nearly 14 percent over the past year, a move Mexico's Central Bank Gov. Guillermo Ortiz called "unjustifiable" in a country where inflation ran about 4 percent. Ortiz pinned the blame on companies monopolizing the market and blocking competition.

Economists also blame increased U.S. production of ethanol from corn as an alternative to oil. The battle over the tortilla, the most basic staple of the Mexican diet especially among the poor, demonstrates how increasing economic integration is felt on the street level.

"This is direct evidence of the way globalization is affecting all walks of life in Mexico and all over the world,'' said David Barkin, an economics professor at the Xochimilco campus of the Autonomous Metropolitan University in Mexico City.

[ProtectOurFreedom]

Growing food, converting it to liquid fuel, and causing third-world hunger is just nuts.

I wonder how the E85-loving Dems will justify this rather than drilling some more holes in the ground to extract petroleum in Alaska and offshore.

[KarlInOhio]

Wasn't Mexico crying that NAFTA allowed cheap US food into Mexico and thus put their farmers out of work? Well, that "problem" is being fixed now.

[Mr_Moonlight]

Economists also blame increased U.S. production of ethanol from corn as an alternative to oil

What the hecky, now? I thought that Ethanol was supposed to be so good and all that .. now they're telling us that its b-b-b-baaadd ????

Nobody can figure this stuff out ... so here goes:

[PAR35]

I wonder how the Mexicans will justify this rather than allowing the Americans to drill drill some more holes in the ground to extract petroleum in Mexico and offshore.

[Vigilanteman]

Actually, I dream of a day when the Arabs come to us to purchase foods and we tell them "We've learned how to turn our food into energy. Perhaps you can learn how to turn your vast energy resources into food."

Mexico needs corn. We have corn. We need oil. Mexico has oil. Therein lies the solution, not bellyaching because we don't want to sell them corn for cheap and pay a premium for their oil.

[dayglored]

> Growing food, converting it to liquid fuel, and causing third-world hunger is just nuts. I wonder how the E85-loving Dems will justify this rather than drilling some more holes in the ground to extract petroleum in Alaska and offshore.

Wait a minute, I must be missing something. Are you saying that if I stand up and offer (say) 10% higher than the going rate for corn, because I have a use for it that makes it worth my while at that higher price, that I should not be allowed to do so? What happened to the free marketplace?

Last I heard, there was plenty of corn to go around. I have a hard time believing that the amount of corn being used to produce ethanol is sufficient to cause significant third-world hunger. Transportation of food is a known problem, but I didn't realize there was a corn shortage. Enlighten me, please.

[EQAndyBuzz]

"I wonder how the E85-loving Dems will justify this rather than drilling some more holes in the ground to extract petroleum in Alaska and offshore."

Presidente Bush's fault!

[Doctor Raoul]

Big Taco...

[uptoolate]

I prefer flour shells myself.

[Cold Heart]

Last I heard was corn was high priced due to ethanol production and causing problems in the dairy industry, others I'm sure too. The demand will cause more corn to be planted but as you may have noticed it is winter and will probably take more than a season or two to play catch up.

Double whammy here in the North West, hay prices and availabilty are not good either.

[VeniVidiVici]

NO BLOOD FOR TORTILLAS!

[theymakemesick]

"Actually, I dream of a day when the Arabs come to us to purchase foods and we tell them "We've learned how to turn our food into energy. Perhaps you can learn how to turn your vast energy resources into food."

Thank you Vigilanteman, now, to use the words of the great American Martin Luther King, I have a dream!

[Centurion2000]

Perhaps you can learn how to turn your vast energy resources into food."

It can be done.

[jerry639]

Transportation of food is a known problem, but I didn't realize there was a corn shortage. Enlighten me, please.

There is no shortage of corn that I know of either. There is plenty of corn in the silos around the nation.

Suggested solution: Round up all 20-30 or 60 million illegals Mexicans in this country and give each a bushel of corn to carry back across the border. Then close the border tight and not let any of them back across.

[dayglored]

> Round up all 20-30 or 60 million illegals Mexicans in this country and give each a bushel of corn to carry back across the border. Then close the border tight and not let any of them back across.

And along with the corn, they get a pamphlet that tells them they have still have the right to apply to immigrate legally, through the normal channels.

Alternative: Rather than give the corn away, sell it at the old price that the article claims it was before it hiked up. Apparently that was considered fair.

Or if you give the corn away, have the retreating illegal do something useful on the way through, maybe put in an hour of labor on the new border fence. From the other side, of course.

[Chena]

Awww geeeez, cry me a burrito. Even I know how to make a tortilla from scratch...and I don't even need corn oil.

[chuckles]

Soilent Brown is People!!!

[ProtectOurFreedom]

Poor Mexicans know how to make a burrito ... they just can't afford the corn because our absolutely stupid energy policies are now pricing corn beyond their reach. See this new article in Business Week, VeraSun: Victim of Costly Corn. The envirokooks in the U.S. federal government have mandated ethanol production rather than exploration and extraction of petroleum, causing economic distortions in North America and driving up corn prices. The same Dem weenies that profess to "care" so much for people are causing more worldwide starvation because they won't open ANWR or won't tolerate the visual discomfort of a few oil rigs five miles offshore. Law of unintended consequences and all that.

[Fierce Allegiance]

Any comment?

[Keith in Iowa]

>>>Any comment?

Media scare tactics.

Supply can be increased to meet the demands of corn for the ethanol industry, and then there's all that left-over stuff from making ethanol that can be used to do silly things like make food.