Mergers and Acquisitions Reshape Argentina's Dairy Industry Landscape
The Argentine dairy industry is undergoing significant structural changes driven by a wave of mergers and acquisitions. According to data from the Rosario Board of Trade (BCR), dairy production reached a decade-high in the first quarter of the year, with 3.5 million liters produced between January and April, reflecting a 9.3% increase compared to the ten-year average. Notably, large-scale dairies now account for almost 30% of national production, up from 5% in 2010.
One of the notable acquisitions this year was the full takeover of Mastellone Hermanos S.A., the owner of the La Serenísima brand, by Arcor and Danone through Bagley Argentina S.A. This move consolidated their control over the company, aligning its strategic direction.
In another major transaction, Canadian multinational Saputo sold 80% of its Argentine dairy division to Peru's Gloria Foods for an estimated $630 million. This sale was part of Saputo's global portfolio optimization strategy. Gloria Foods, which was already operating in Argentina through Corlasa, expanded its scale and strengthened its position in the market with this acquisition.
Meanwhile, the cooperative SanCor, after filing for bankruptcy with debts amounting to $120 million, had its asset liquidation approved by the court. The assets were divided into seven lots with a total base value of $52.1 million, attracting interest from six groups including Savencia (Milkaut) and Adecoagro. The lot containing brands and intangibles was particularly competitive, valued at $24.7 million.
Additionally, Establecimientos San Ignacio, a traditional producer of dulce de leche, is negotiating its potential acquisition by the Mexican group MIYM, which has previously acquired other local dairy companies.
These activities occur against a backdrop of increasing exports, which have become a key driver of investment. In the first quarter, Argentina's dairy sector exported 130,000 tons, the highest volume since 2012, generating $455 million in revenue. Brazil is the primary export destination, followed by Algeria, Chile, and China.
The current trend in the Argentine dairy market highlights a dual dynamic: the exit of multinational corporations and historic structures, alongside the entry of regional players and consolidation of strategic assets, leading to a more concentrated market focused on production scale and export capabilities.
