MercoPress. South Atlantic News Agency
Brazilian meatpacker moving out of Argentina sells plant to local government
Brazilian meatpacker JBS SA has sold one of its two units based in San Jose, Argentina, the company said in statement Wednesday. The unit was sold for 16.5 million dollars to a group of local cooperatives and the provincial government, which will run the operation. Read full article
Comments
Disclaimer & comment rulesThe same story as the energy crisis, if you put caps on prices you kill the goose that lays the golden egg.
May 11th, 2012 - 01:20 pm - Link - Report abuse 0Well done the Kirchners, with their brilliant economic know how we are just about on a par with DPRK!!!!
Only a year to wreck a business - they're reaching new heights.
May 11th, 2012 - 01:37 pm - Link - Report abuse 0keep up the good work, and even malvino will say your finnished mmm.
May 11th, 2012 - 02:09 pm - Link - Report abuse 0Foreign investment?
May 11th, 2012 - 02:10 pm - Link - Report abuse 0And the re-opened plant will be run by a consortium of locals and the provincial government: that's fcuked it then.
May 11th, 2012 - 02:59 pm - Link - Report abuse 05 ChrisR (#)
May 11th, 2012 - 03:06 pm - Link - Report abuse 0May 11th, 2012 - 02:59 pm
Not necesarily, sometimes this sort of combination actually works. I really hope it does in this case as there are a lot of jobs involved in meat packing plants.
Slowly and without fanfare foreign investors will take their losses and leave Argentina. The gov't will take over the business when they can to save the jobs but will find it increasingly more difficult as U$ runs short.
May 11th, 2012 - 03:10 pm - Link - Report abuse 0This is a nightmare scenario for the country.
@4
May 11th, 2012 - 03:31 pm - Link - Report abuse 0It's foreign. Foreign investment should be to open new plants and business, not to buy up what already exists and then ship the profits out.
That's why foreign investment in Mendoza wine region works (they don't come to buy existing wineries, they open new ones), and they do great and the local wineries do great.
In the meat sector, what happened was foreigners came and bought what already existed, made no investments and then wanted to close and ship the business to Paraguay, Uruguay, or Brazil. That is not true foreign investment creating wealth, that is transferring wealth.
La Campora will take it over, then they'll take all the money out of it and ultimately it'll be furked and need saving with more cash.
May 11th, 2012 - 03:39 pm - Link - Report abuse 0Just look at Maximo Airlines, they're utterly furked and no one dares to fly with them.
Cooperatives have proven succesful in Argentina. They are managed and run by workers, which means they are far less suceptible to union bosses, since they “management vs worker” side of the equation is eliminated.
May 11th, 2012 - 03:45 pm - Link - Report abuse 0If they are educated workers, or workers that know their industry and love what they do, they have done well. Cooperatives that were taken over by “wage” employees that just did the job to get payed, those are the ones that go under, example TAC (yet they were very succesful for a while).
I just read this in the Herald:
May 11th, 2012 - 03:47 pm - Link - Report abuse 0Kretina said “we have been told for years that we have been falling away from the world, and the truth is that we have never fallen, but our problem is that the rest of the world is doing so.”
It's a classic, “Everybody else is wrong and I AM RIGHT”.
See: http://www.buenosairesherald.com/article/100533/trade-union-demands-spread
Um, wrong again toby, what happened is Brazil made a huge investment a few years ago, modernized the facilities then the gov't in their infinite wisdom put price controls on beef for the internal market and only let “preferred suppliers” export any products. Preferred means friends of CFK.
May 11th, 2012 - 04:03 pm - Link - Report abuse 0CFK drove the profits, out of the beef business destroyed it and investors are fleeing. That's what really happened.
Dead right yankeeboy, as I said in #1.
May 11th, 2012 - 04:06 pm - Link - Report abuse 0I'm agreeing with you chaps here.
May 11th, 2012 - 04:09 pm - Link - Report abuse 0Tobias is failing to polish the turd.
Brazil made an investment? Really, which ministry was assigned to the investment?
May 11th, 2012 - 04:17 pm - Link - Report abuse 0Any business not run by an imbecile will get out if they can before CFK, the Peronists and fat Maximo steal it.
May 11th, 2012 - 04:17 pm - Link - Report abuse 0I heard from a good sauce that Maximo has ordered that the end of this company's production line be changed so that the meat is cooked and then rolls off the line directly onto his plate, accompanied by a cream bun. Apparently this is needed because the Glorious Leader in Grooming needs to be well fed to keep important companies like Aerolingus Argentinas doing well.
May 11th, 2012 - 05:46 pm - Link - Report abuse 0Don't question my sauces.
@17
May 11th, 2012 - 06:00 pm - Link - Report abuse 0LMAO.
@8 ”That's why foreign investment in Mendoza wine region works (they don't come to buy existing wineries, they open new ones)”,
May 11th, 2012 - 06:02 pm - Link - Report abuse 0That is absolutely not true.
Wow! this is really a sad story. Seriously, I am I the only one here that likes Corned Beef Sandwiches. This is a country that outside of the USA used to produce and export beef all over the world and you know how us Brits love our beef.
May 11th, 2012 - 06:36 pm - Link - Report abuse 0This is serious, how the f..ck can they be expected to exploit the YPF bonanza when they can not even slaughter a poor dumb male cow!
Tobias
May 11th, 2012 - 06:41 pm - Link - Report abuse 0The essence is that freedom without contsraints and capital controls is what attracts capital. The government, particularly the Peronists, are incapable of making value judgements about business. The reason the US is the richest country is because up no now the constraints on businesses by govenment were minimized. Of course that all appears to be changing now with Mr Obama and his Socialist rabble
@21WM
May 11th, 2012 - 07:12 pm - Link - Report abuse 0Well explained. I fear It fell on deaf ears.
good plan don't wanna be there when they try to nationalize the meat packaging sector lol
May 11th, 2012 - 11:07 pm - Link - Report abuse 0Once provided beef for the world!
May 11th, 2012 - 11:08 pm - Link - Report abuse 0#8&10 Well explained tobias, I think this is a good news story behind the spin
May 12th, 2012 - 11:20 am - Link - Report abuse 0#11 Simon have you not noticed the world IS in crisis?! Just because you can't blame your pet hate the lovely Cristina for it doesn't mean its not so
#21 Obama a socialist? Your having a laugh!
I told you international companies would start to exit Argentina.
May 12th, 2012 - 11:25 pm - Link - Report abuse 0It all makes sense!
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