The announced acquisition of new refrigeration plants by the Brazilian multinational company Minerva Foods, caused alarm among rural unions and members of the Executive, whose representatives met last Friday with President Luis Lacalle Pou.
The Undersecretary of Livestock and Agriculture, Juan Ignacio Buffa, said that “a concentration process will deepen” if the purchase by Minerva goes through. “Any phenomenon of concentration of the demand for cattle in a few hands, is always a complex phenomenon and may lead to situations of lack of competitiveness and lack of alternatives for producers,” Buffa added.
The three subsidiaries that Minerva Foods plans to acquire correspond to Marfrig, also a competitor from Brazil. These units will be added to the other purchased refrigeration plants, which is why the Brazilian meat emporium may control seven Uruguayan refrigerators with this transfer.
The purchase of seven Uruguayan refrigeration plants by Brazilian companies is part of a disbursement for 1.5 billion dollars for 16 refrigeration plants in the region (11 units in Brazil, one in Chile, one in Argentina and the remaining three in Uruguay).
The president of the Rural Association of Uruguay, Patricio Cortabarría, described the fact as very dangerous.
The matter will be analyzed by the Commission for the Promotion and Defense of Competence (COPREDEC) of the Ministry of Economy and Finance.
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