Mexico: President calls on brewers to reduce production in drought-hit areas

Mexican President Andres Manuel Lopez Obrador on August 8 called on brewers to reduce beer production in drought-hit areas in the north of the country, a major exporter of the beverage, Barron's reported.

"That's not to say that we'll no longer produce beer. I mean, beer won't be produced in the north," Lopez Obrador told reporters, although he stopped short of ordering a halt.

Lopez Obrador said his government would support companies if they make beer in southeastern states known for their mighty rivers, lush jungle and high levels of poverty.

"But permission can no longer be given where there's no water," he added.

Mexico was the world's largest beer exporter in 2021 with sales of around $5 billion, followed by the Netherlands with nearly $2.2 billion, according to United Nations data.

Dutch giant Heineken and Belgian-Brazilian behemoth Anheuser-Busch InBev are among brewers with factories in northern Mexico.

Households in the northern industrial powerhouse of Monterrey have faced weeks of water rationing due to a lack of rain and, according to environmentalists, poor resource management.

The government has declared a drought emergency to enable authorities to take special measures to guarantee water supplies.