Vicentin, Los Grobo, SanCor y otras: Why These Industry Giants Are Struggling in Argentina
Source: dairynews.today
Multiple major players in the agribusiness and food sectors are facing deepening financial crises.
The financial situation of several major players in the agribusiness and food sectors continues to deteriorate. Key cases and causes of the crisis are highlighted as economic shifts in 2024 hit companies like Vicentin, Molino Cañuelas, and others hard. Despite unique financial complications for each company, structural economic changes, climate impacts, and reduced international markets, particularly due to avian flu, have contributed to their struggles.
In particular, the dairy and food companies ended 2024 with a nearly 10% drop in dairy consumption, affecting their financial health. Rising operational costs, albeit slowed by reduced inflation, still pose heavy burdens due to ongoing deep financial difficulties and lack of fresh capital.
Other issues include a long-standing drought, pest outbreaks, increasing commodity costs affecting corn cultivation, and historically low commodity prices. The Fundación Mediterránea notes that 2024 was a year of uncertainty, with depressed prices and a strong currency hindering sector performance, and further climatic setbacks could prove devastating.
Despite government rejections of a structural crisis, concerns grow among producers tied to financial obligations with these companies. The examination by the Bolsa de Comercio de Rosario paints a grim picture with a severe drop in agricultural commodity prices in 2024. However, shifts in international trade under Donald Trump's policies could open new opportunities for the domestic agro industry.
Overall, 2025 is seen as a challenging year, requiring strategic business maneuvering to turn around the financial and commercial red tide supporting the industry giants through these turbulent times.
In particular, the dairy and food companies ended 2024 with a nearly 10% drop in dairy consumption, affecting their financial health. Rising operational costs, albeit slowed by reduced inflation, still pose heavy burdens due to ongoing deep financial difficulties and lack of fresh capital.
Other issues include a long-standing drought, pest outbreaks, increasing commodity costs affecting corn cultivation, and historically low commodity prices. The Fundación Mediterránea notes that 2024 was a year of uncertainty, with depressed prices and a strong currency hindering sector performance, and further climatic setbacks could prove devastating.
Despite government rejections of a structural crisis, concerns grow among producers tied to financial obligations with these companies. The examination by the Bolsa de Comercio de Rosario paints a grim picture with a severe drop in agricultural commodity prices in 2024. However, shifts in international trade under Donald Trump's policies could open new opportunities for the domestic agro industry.
Overall, 2025 is seen as a challenging year, requiring strategic business maneuvering to turn around the financial and commercial red tide supporting the industry giants through these turbulent times.
