Mexican Food Companies
Freeze Prices
Food manufacturers promised Mexico's government last week that they would freeze prices on more than 150 food products to help families cope with rising costs.

President Felipe Calderon said prices for goods such as beans, canned tuna, fruit juices, coffee, ketchup, and canned tomatoes will remain fixed until Dec. 31, 2008.

Earlier this year, Calderon was quick to blame ethanol for food-price woes, despite the fact that tortillas and ethanol do not use the same type of corn and are not in “competition.” Since then, he has widened his understand and is looking at all causes, including the growing costs and profits of food manufactures.

Calderon, a conservative elected in 2006, has taken several steps to fight high prices. He eliminated import tariffs on several foodstuffs in May, won an agreement from rice farmers to sell their crop at 10% below international market prices and last year imposed price caps on tortillas, Mexico's staple food.

Mexico's central bank said annual inflation rose to 4.95% in May, the fastest pace in more than three years, led by the swelling costs of food oils, rice, wheat products and corn tortillas.

Will United States food companies feeze prices?
Unlikely. Grocery Manufactures Association’s approach to food-prices has been to launch a $15 million dollar “smear campaign” against ethanol. More

June 23, 2008