Lime Producers in Michoacán Stop Work Due to Cartel Threats

Lime producers in Michoacán, Mexico, have indefinitely halted their operations due to escalating extortion from criminal groups, signaling a severe crisis in the agricultural sector. The work stoppage, primarily affecting the regions of Buena Vista and Apatzingan, follows a recent week-long suspension of avocado exports due to rising violence. This disruption is expected to lead to decreased lime production, increased prices, and unemployment for over 10,000 families reliant on the industry. The extortion issue is exacerbated by the activities of criminal organizations, notably “Los Viagras,” which are also vying for control over the avocado trade. Producers have reported being coerced into paying extortion fees that have recently increased from two to three pesos per kilo of lime. Consequently, 70 to 80% of packing companies in the affected areas have ceased operations, with 15 out of 32 companies refusing to resume work until security guarantees are provided. The crisis has resulted in a significant spike in lime prices nationwide, with some areas experiencing increases of nearly 50%, raising prices from 30 to 60 pesos. President Andrés Manuel López Obrador has acknowledged the extortion problem and assured that federal and state authorities are intervening to protect lime producers, deploying the Army, National Guard, and state police to the region. In contrast, Michoacán Governor Alfredo Ramírez has dismissed the extortion claims, suggesting that the producers' actions are aimed at inflating lime prices rather than addressing security concerns. Michoacán is Mexico's second-largest lime producer, generating approximately 700,000 tons annually from 50,000 hectares, primarily for the domestic market, with some exports to the United States.