The mexican tortilla crisis of 2007: The impacts of grain-price increases on food-production chains

This article examines the case of the Mexican 'tortilla crisis' of 2007. Drawing on reviews of literature and the media, key-informant interviews, and secondary databases, the authors explore the response of the Mexican maize - tortilla chain to a price shock. Price increases should theoretically be passed on to the consumer as a progressively less significant percentage of the overall price of value-added food products. However, in Mexico, price increases were magnified along the maize - tortilla production chain. This was due largely to asymmetries among segments of the chain, which conditioned the responses of industrial-scale corporations and small-scale family businesses. This case study suggests that, in order to understand the impacts of price-shocks on poor consumers, more detailed, country-level analyses of market chains and price-ransmission structures are needed.