Mexico: Citrus grower cartel irks margarita market

Industry insiders are calling out lime growers in Mexico’s Michoacan state for forming a possibly illegal price-fixing and supply-manipulating cartel, a tactic reports say has helped intensify the decline of margarita consumption in the nation.

According to reports, the Citrus Growers Association of Apatzingan Valle are limiting lime supplies to guarantee a minimum price, according to association member Leonardo Santibanez. The group reportedly told farmers not to harvest limes on March 12 to maintain a price minimum, an act that cleared the market of limes that day, reports say.

Former antitrust commissioner Miguel Flores Bernes told reporters that the action could be illegal, but did not go so far as to accuse the lime growers of illegal activity.

Lime has become the largest contributor to Mexico’s inflation, report say, as prices for the fruit surge and quality, according to bartenders, has declined.

Full Content: Businessweek

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