June 9, 2020

Argentina government takes over soy crusher Vicentin

Argentina President Alberto Fernandez said the government will purchase bankrupt Vicentin in order save jobs and protect Argentina's food exports, Reuters reported.

Vicentin is one of Argentina's top exporters of processed soy and contributed to the country being the top soymeal livestock feed exporter in the world. The company was founded in 1929 and its brand name is well-known domestically.

President Fernandez said he did not consult with Glencore before deciding to take over Vicentin. Glencore owned Renova has a joint venture with Vicentin and owns a soy crushing plant in Sante Fe Province. Renova remains in operation even as Vicentin defaulted on bank loans and suppliers earlier this year.

US$12.2 billion in soymeal and soyoil has been exported by Argentina in 2019. Livestock feed made from soy are produced in Argentina's grains superhighway, the Parana River for export to Europe and Southeast Asia.

President Fernandez said the Vicentin purchase will safeguard the jobs of all its workers and the 2,600 farmers that supply grains to the company.

Argentina defaulted on sovereign bonds in May 2020, with a 9.5% fall in its gross domestic product this year according to an analysts' poll by the central bank.

-      Reuters