The Mexican Coffee Crisis

Abstract

The Mexican coffee crisis that began with the liberalization of the international coffee market in 1989 led to the reorganization of the coffee sector under the control of transnational companies after state regulation has been replaced by policies aimed at allowing the survival of the small producers but not reactivating the sector. The resistance of the powerful roaster industry, dominated by the giant Nestlé, has made it impossible to improve the quality of the coffee sold on the domestic market, and its importation of cheap robusta coffee for use in instant preparations has further reduced prices. The survival of the producer cooperatives depends on their capacity to enter the market through niches such as the organic and Fair Trade, where they receive a better price for their products. For the others, the only solution is to migrate to the North.