Argentine Meat Industry Faces Challenges Over Unfulfilled Contracts with China
Photo: Frigorífico General Las Heras.
In Argentina, the General Las Heras meat processing plant, located in the Buenos Aires province, is facing a severe crisis that combines the failure to fulfill export commitments to China, labor conflicts, and a 35-day halt in operations. This situation affects not only the 400 workers at the facility but also the reputation of Argentina’s meat processing sector in its primary international market.
The plant, one of 26 facilities in Argentina authorized to export beef to China, owes the delivery of 200 containers of beef to over 50 Chinese companies. The issues began in November 2023, when the plant’s owner, Mariano Martínez, acknowledged initial delays due to unfavorable exchange rates and renovations required to secure European export certifications. However, the failures persisted, leading to formal complaints filed with the Chinese embassy in Argentina.
In addition to the commercial challenges, workers are facing delays in salary payments, holiday bonuses, and collective bargaining agreements. In response to the management’s lack of communication, the Greater Buenos Aires Meat Industry Workers’ Union (SICGBA) led a peaceful takeover of the plant in late December, citing allegations of abandonment by the company’s leadership.
Founded in 1987, the General Las Heras plant has a daily production capacity of 1,500 cattle and began exporting to China in 2018. However, its heavy reliance on the Chinese market has exposed vulnerabilities. In 2019, the plant faced a temporary suspension for failing to meet Chinese quality standards. Recently, the owner expressed plans to diversify into domestic markets to reduce dependence on exports.
The crisis at General Las Heras jeopardizes 400 jobs and raises concerns within Argentina’s meat processing industry, particularly regarding the potential impact on trade relations with China, a key market for the country’s exports. The situation underscores the urgent need for operational stability and market diversification in a sector critical to Argentina’s economy.
Main Source:
El incumplimiento de un frigorífico embarra la cancha con China y pone en alerta a todo el sector – El Cronista
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