Ever since the cartel started accessing the Mexican tortilla industry, the price has gone up by a whopping 60% for the end user. This has left many people asking how these cartels which are associated with drug trafficking and other criminal activities got to the ordinary business of tortillas.
The situation has gotten so terrible that the majority of Latin American nations are now hubs for the production and distribution of drugs, including cocaine. However, these gangs are posing a threat to not only tortillas. But also to other companies such as fishermen, poultry vendors, and builders.
Mexican Cartels Current Area of Interest
The majority of people once thought that Mexican cartels would only ever concentrate on drugs. Although this used to be the case, their current area of interest is attempting to seize control of their nation.
Now, the cartels have decided to attempt to seize areas that they can profit from. They have even threatened candidates for elections in Mexico. Thereby forcing them to withdraw from the race. As a result, some 34 of them have been assassinated.
US Weapons Linked to Mexican Cartel
An investigation into the hacking of Mexican military intelligence revealed several incidents in which Mexican cartels were connected to US weapons.
In an information breach of significant proportions, the leak also disclosed which American businesses and vendors had been selling these weapons to the Cartels.
Tortilla Manufacturers Are Caught Unprepared
Food manufacturers, especially those producing tortillas, found themselves unprepared when the cartel turned its attention to the market.
Due to the lack of choices and no other supply company, they had to buy corn at very high costs which in turn affected others higher up the chain of supply.
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Rise in Prices
The consequences of the cartel’s penetration were fast and fatal. Tortillas political prices soared and this pressed many family budgets.
The data indicates that there was a significant rise in the average cost per pound of tortillas by more than 60%. This implies that people could no longer easily afford this basic food commodity.
Stricter Gun Law
Due to the dire circumstances in Mexico, the Mexican cartels have been discovered in possession of American firearms. Thereby forcing the U.S. government to enact stricter gun control legislation.
This comes after multiple violent incidents with American firearms have occurred in Mexico and other nations, and the United States does not want to become involved.
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Crimes and Corruption
When the cartels consolidated their positions in the industry, cases of corruption and violent acts were heard as well.
Those farmers who tried to resist the cartels were threatened and sometimes violently assaulted. The farmers who complied were given generous prices for their beans.
Human Cost
The effects of cartel involvement are not isolated to the world of money-making. Some families who used to benefit from cheap tortillas are now struggling to pay for basic food and the other needs they have in their lives.
There are also concerns about impacts on public health and nutrition, as people consume cheaper, although less healthy, foods.
Government Inaction
With the increasing Antitrust worries about the cartel in the tortilla industry, the governmental organs remain relatively passive.
Some have expressed concern that failure to act has emboldened the cartels to tighten their hold on the market even further.
Why Are Mexican Cartels Taking Over The Tortilleria Industry?
The reasons for Mexican cartels wanting to take over tortillas are not entirely clear. Drugs and locating buildings that may be used for this purpose were the main concerns at first.
The cartels understood that they could boost their drug distribution while maintaining the appearance of a respectable company. As a result, they could exert control over the business owners and any employees they may have.
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Financing the Mexican Cartel
The Mexican cartel industry is partially financed by tortillas, so it’s not only the enterprises that are complicit in the violence.
The money collected from tortilla sales is utilized by the cartels to purchase the weapons they use to intimidate people once they seize control of a tortilla.
Threatening the Tortillerias
The threat to tortillas is a recent development. Only a tiny portion of people were threatened with this a little over ten years ago, but since then, the ratio has increased to 15% and is still growing.
This equates to 20,000 storefront companies that are routinely blackmailed. These companies face the threat of being shot at or set on fire if they don’t make payments.
The Role of Consumers
They also have to actively participate in the fight against cartel practices in the tortilla market as well. Therefore, the need to learn about the challenges affecting this industry so that consumers can force change and buy from companies that respect the rights of workers.
The cartelization of the tortilla industry is another problem, which has become alarming. We should also recognize that authorities and consumers need to act. Also, be actively involved in the transformation of this significant sector of our economy.
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