View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
June 26, 2007

GUATEMALA: Pressure on prices amid US biofuels craze

Exports to US ethanol producers are fuelling soaring prices of corn and wheat in Guatemala, prompting the local food industry to ask for government help against rising costs.

Exports to US ethanol producers are fuelling soaring prices of corn and wheat in Guatemala, prompting the local food industry to ask for government help against rising costs.

The leading food industry federation in Guatemala, Gremial de Fabricantes de Productores Alimenticios (GREFAL), has threatened to pass the higher raw material prices onto consumers in the Central American country.

According to GREFAL, corn prices have soared by 75% in the last year, with the price of wheat jumping 43%. However, food producers have been absorbing the cost, in part to assuage protests from leftist groups in the impoverished country.

A GREFAL spokesperson said food prices had remained stable, contradicting reports the cost of products like chicken, corn tortillas and bread had risen and triggered a 20% slump in consumption.

“We have asked the Government to act in this matter or we will have to increase prices,” the GREFAL spokesperson told just-food yesterday (25 June). The Government is considering slashing duties on imports of flour, corn, oil and animal fats to keep food prices in check, she added.

“We are hopeful that they will help in this matter,” the spokesperson said. “But we have to wait to see what happens in future meetings.”

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food