How Do Farmer Road Blockades Impact the National Economy?
Farmer blockades cause logistical disruptions and millions in losses. Government negotiates maize price support while business chambers condemn the economic impact.
Road blockades implemented by
The National Chamber of Road Freight Transportation (
“Each hour of interruption in road traffic flow generates multimillion-dollar economic losses… these actions affect the productivity of freight transport companies, jeopardize the safety of operators, and hinder the supply of essential products for millions of Mexican families.”
CANACAR emphasized that, while acknowledging the demands of the agricultural sector, “road blockades are not the means to achieve lasting solutions, as they directly affect other productive sectors and the citizenry”.
“The Mexican industry demands responsibility and compliance: road blockades cannot be the cost of dialogue,” stated the organization in its position.
“These actions erode confidence in the stability of the productive environment” and cause “partial closures in micro and small businesses dependent on daily supplies.”
CANACINTRA acknowledged the agreements reached with the Federal Government but insisted: “no legitimate demand can be expressed through actions that paralyze national mobility or jeopardize the safety of the population and productive supply chains”.
The Secretariat of Infrastructure, Communications and Transportation (
At the morning press conference on October 29, the Secretary of Agriculture and Rural Development, Julio Berdegué, explained that the producers’ dissatisfaction stemmed from a 21% drop in the international price of maize since January, a situation resulting from a global increase in grain availability.
“We have the lowest prices in the country since 2017,” he noted. “The international price is around 3,400 pesos per ton; with logistics and transport costs, it reaches approximately 4,850 pesos, a level that does not cover the production costs for many Mexican producers.”
The official detailed that the agreement with agricultural leaders from Jalisco, Guanajuato, and Michoacán includes:
- “A support payment of 950 pesos per ton of maize” for approximately 90,000 producers with up to 20 hectares.
- “The expansion of the Cosechando Soberanía (Harvesting Sovereignty) program,” with loans at an annual rate of 8.5% and the inclusion of agricultural insurance.
- “The creation of the Mexican System for Maize Market Regulation and Commercialization,” which will establish reference prices and promote direct commercialization agreements between producers and industry.
Berdegué highlighted that the new system “will have mechanisms to define reference prices for maize, promote direct commercialization agreements, and establish clear rules for all parties”. He added that agricultural leaders “asked to thank the President for this initiative, which they believe addresses the core issue and resolves a pending structural situation in the country”.
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