Argentina’s Dairy Industry: A Year of Conflict, Consolidation, and Global Interest

The dairy industry in Argentina is experiencing a year of significant shifts and transformations. Notable in these developments is the ongoing saga between industry giants ARCOR and Mastellone, with analysts dubbing it 'La guerra de los Roses.' This conflict promises to bring major changes to the market dynamics, and stakeholders are preparing for an active year ahead.

Among the critical movements is the acquisition of a 20% stake in the major local player Adecoagro by global cryptocurrency leader Tether. Under the leadership of Mariano Bosch, Adecoagro is noted for its dominance in dairy, sugar, rice, and biofuels sectors.

Meanwhile, SanCor, a significant competitor within the dairy industry, is grappling with severe financial challenges, with debts amounting to approximately $400 million. Speculations about the company's future liken its situation to the ill-fated Vicentín, raising concerns of an impending financial collapse.

On a more positive note, ARCOR and Danone are setting ambitious targets for La Serenísima, aiming to expand their control over the enterprise to 100% this year. ARCOR currently holds a 49% stake in the company, indicating their strategic focus on growth and consolidation.

The Argentine dairy industry, despite the challenges, remains of interest to global heavyweights, particularly as New Zealand hits production capacity. The ability of Argentina to expand remains a key asset, making it a focal point for future international investment in the sector.