Salt Crisis Stagnates Exports

Sharp crisis grips ESSA as 6 million tons of unsold salt choke Guerrero Negro. Worker fears mount as President-elect’s team mulls solutions amid economic ripples.

## Crisis at the Salt Exporter: 6 Million Tons Unsolved

Half a year has passed since President Andrés Manuel López Obrador (AMLO) announced the nationalization of the Salt Exporter Company (ESSA) located in Guerrero Negro. With a significant investment, the Mexican government became the sole shareholder of the world’s largest salt exporter. However, what began as a celebratory event for the federal administration has now escalated into a concerning crisis due to apparent issues in salt sales, resulting in an excess of millions of tons.

Workers of ESSA first brought attention to the issue, and in July of this year, the Governor of Baja California Sur, Víctor Castro Cosío, was questioned about the situation, though information came slowly. “The information I have is very limited from a now national company, but it depends on the Ministry of Economy. What has been made public is that the scheduled salt sales have not occurred,” he stated nearly two months ago.

This week, evidence including photographs and testimonials confirmed the crisis, revealing that around six million tons of salt remain unsold, stagnating in the ports of El Chaparrito and El Morro on Cedros Island. Castro Cosío mentioned that during his recent visit to Mexico City, he engaged with Marcelo Ebrard, the upcoming Secretary of Economy under President-elect Claudia Sheinbaum’s administration.

“I discussed with Marcelo Ebrard the need for a meeting in Guerrero Negro to find ways to support the salt company during this term. We reclaimed it for the nation but now must strengthen its commercialization,” Castro Cosío stated. He emphasized that the company has not sold the salt at reduced prices, opting instead to seek new markets willing to pay over $20 per ton.

The Governor also pointed out that this issue relates to a price battle in the current salt market. ESSA’s annual production stands at eight million tons, and the unsold inventory surpasses half of this output.

Anticipating Sheinbaum’s new administration, the hope remains for a swift resolution. Castro Cosío reflected on the significance of nationalizing ESSA and the pride it should bring the current generation, emphasizing the importance of reclaiming privatized assets for the nation.

### Labor Uncertainty

The situation has affected the community of Guerrero Negro, where the salt company is the primary employer, with over 1,300 jobs. Workers have anonymously indicated that the price hike per metric ton of salt is causing the sales stagnation. “Globally, industrial salt prices range from $23 to $24 per metric ton, but our Government aims to sell it at $26,” they explained.

Despite some operational changes in departments, such as reduced work shifts, wage payments have remained consistent. Previously, there was a pressing need to modernize infrastructure, demanding up to 200 million pesos due to accidents and delays.

The community looks forward to the new federal administration, hopeful for improvements in ESSA’s commercialization and overall operations.

### Secondary Article: New Developments and Reactions

As the situation at ESSA continues to unfold, various stakeholders have voiced their concerns and expectations. According to recent reports, the Japanese company Mitsubishi, which previously held a stake in ESSA, has expressed interest in renegotiating terms or possibly re-entering the market under new conditions.

In parallel, local businesses in Mulegé have started feeling the economic pinch as the stagnation in salt sales affects their supply chain and revenue streams. Economists suggest that diversifying the buyer base and exploring new international markets could be a viable strategy, overcoming the monopolistic pressures from previous Japanese stakeholders.

Marcelo Ebrard, soon-to-be Secretary of Economy, reiterated his commitment to resolving the crisis swiftly. “We are looking into potential partnerships with Asian and North American markets that align with our pricing strategy and ensure steady demand for ESSA’s output,” he mentioned during a recent press briefing.

The workers continue to pin their hopes on the promised modernization plans and better negotiations under the new administration, looking forward to more stable and profitable operation periods ahead.

Stay tuned to TJGringo.com for the latest updates on the ESSA crisis and other significant events impacting Baja California and beyond.