Carla Martín Bonito: consumption is recovering in a disparate way according to food and drink categories. In the case of food, it is more consistent than in the case of drinks and, especially, of non -alcoholic beverages, which still does not finish marking a recovery trend. In the first semester of 2025, food and beverage retail sales grew 4.1% against the same period last year, although they still remain below most of the previous years (they only exceed those registered in 2019). Food recovery is 2.2% year-on-year and 4.9% in the accumulated January-June. In drinks, on the other hand, an interannual fall of 4.1% and stagnation in the accumulated is observed. Last year we came from falls in consumption levels for all food items. The end of “stock” forces to rethink commercial strategies: today the consumer seeks price, seeks promotions and seeks to consume fairness.
Q.: How did prices evolve on average in the food industry?
CMB: Prices are slowing down. Today the context in which the entire economy operates remains inflation at a lower pace. The last official fact is 1.4% monthly for the food category. Still the deceleration rhythm in the case of prices at factory exit is much higher than the retail channel.
Q.: How much do food imports affect?
CMB: Imports are part of our activity. That is, our companies import raw materials, supplies for production and also final goods as part of its portfolio. We are importing around US $ 2,000 million. That was historical.
Q: Do you have a hard time getting staff?
CMB: Depends. Intensive labor sectors, which are linked to more primary activities, have greater difficulty. Not only in relation to preparation but also to availability. Young people no longer bet to work in the field. There is a lot of migration and it is difficult to have the staff in the quantity, in time and form.
Competitiveness
Q.: How competitive is the sector today?
CMB: Producing in Argentina is expensive. It is expensive for the high tax burden that in the case of food is in the order of 40% for food and 50% for drinks. Every 10 products that buy a family, almost half are taxes. Then there are other costs that also affect competitiveness, especially when we compare ourselves with the world. The logistics cost is one of them. We are talking about logistics costs that are 40% above the regional average. We also have all the situation or rigidity that is framed in labor relations, in collective agreements, which need a review, rediscut and modernization.
Q.: What should be done in terms of labor regulation?
CMB: It is necessary to modernize frames that have been outdated for years, which do not even contemplate everything that is technological progress. We are talking about agreements that are prior to the existence of the Internet. There are functions that no longer exist, but that are contemplated in the agreements. For example, in the case of pasta or fresh tapas were the cutters, which fulfilled the function of manually cutting the empanadas tapas. That function today no longer exists. It has to be able to replace with new functions. However, the agreement continues to contemplate non -existent functions and perhaps does not give rise to new functions. I will also comment on a case that generates inefficiency and direct costs. In the collective framework of load transport it is required to take three people in an empty truck. For export, we have made an analysis of how much it costs to move a 40 -foot container and it is more or less 3 times more expensive than in countries in the region. In the case of importation, according to another report, the cost of moving a greater load container in our terminals is 13 times higher.
Q.: How is the infrastructure situation? Do you have dialogue with the authorities?
CMB: What began in terms of the logistics agenda was the authorization of the sections for the operation of the bitrenes to have a means that could move more load. Since there are still a lot of challenges. Infrastructure deficits are also part of that agenda. For example, what possibilities are there to recover the railroad and also put into conditions the operation in ports, a fundamental issue. Argentina needs to export to grow and we are a sector with immense potential.
Export potential
Q.: How much exports the sector?
CMB: The sector constantly contributes currencies to the country, with a positive balance that is around 30,000 million dollars annually. It is one of the few industrial branches with a widely favorable external balance. With agribusiness represents 60% of Argentina’s exports. We represent four out of ten dollars of export. Our sector already provides the potential that is projected with sectors such as Vaca Muerta or Lithium. We sell more than 170 destinations on the five continents. Copal represents 14,700 companies and the food chain directly employs more than 400,000 workers and is distributed throughout the national territory. This strengthens productive roots and the possibility of expanding export poles in different provinces.
Q.: And could they export more?
CMB: The export potential is huge. Note that the European Union has 177 trade agreements, Chile has 30 and Argentina only 10. Today the food and beverage industry is producing at 60% of its installed capacity. There is enormous growth potential.
Q.: How do tariffs imposed by the Trump administration impact?
CMB: They hit our industry because there was an increase in averages: they were 5% and now 10% are added. What we expect is that conversations prosper to have a better position with respect to what it governs today. We know that these conversations have been giving.
Carla Martín Bonito
Tax load
Q.: If I asked the government for a measure, what would it be?
CMB: First I would try to conclude the tax low path already announced by the Government and that was touring. It has to do with export rights, the country tax (which was eliminated), debit and credits. In cases of gross income and all taxes that generate balances in favor of companies and that are retained by the system, which are eliminated the mechanisms of early collection. In this way, the accumulation of balances that are not freely availability would be avoided and prevent the company from having a liquidity that corresponds to it. Considering that the reforms will take time, we propose areas that require action as intermediate scenarios. It is necessary to recover the liquidity of the immobilized balances both before the national and provincial state. The sector has immobilized millionaire amounts. Before the national state, balances in favor in VAT, export reintegures pending collection and the rest of the country tax, for example. In a panel of 19 food and beverage export companies are currently 17.5 million dollars owed by reimbursements which correspond to exports of the last five years. In the case of VAT, some food and drink companies sell products with reduced VAT (10.5%), but their inputs and costs are taxed with full VAT (21%). That generates what is called “VAT technical balance”: the company pays more VAT in its purchases than what it charges in its sales. It is a chronic problem that needs a reform to enable return or transformation into free availability balances. Sector companies accumulate up to 12,000 million pesos individually.
Q.: And how is the situation with the provinces?
CMB: With the provinces, the problem is serious and has great financial impact with the accumulation of balances in favor by gross income. That is, a tax surplus paid in advance and that is generated by resulting in the payment of withholdings or perceptions practiced by banks, customers or suppliers, superior to the monthly obligation. A survey carried out by our fiscal department with 28 companies showed that 32 billion pesos have accumulated in “balances in favor” for gross income. On average, companies take 2 years to recover their balances in favor, but some provinces take up to 8 years.
Q.: What things are concerned about the electoral scenario we are spending?
CNB: Beyond the electoral scenario, perhaps the concern or focus is on how all this political context is transitted by preserving the stability and macroeconomic system achieved. For us as a sector it is essential to continue developing our activity containing any volatility situation, price distortion or any issue that has to do with the macroeconomic order. We consider it essential to continue on the same path, because also as a sector we have been making a lot of efforts to contribute, for example and among other things, to the inflation deceleration path. Predictability is fundamental, intersectoral dialogue is fundamental and it is also essential to be able to be certain of precisely the initiatives that are impossible for us as tax and labor reforms.
Q.: Do you trust that it will be possible to implement these reforms?
CB: We first trust the government’s decision to promote these reforms. What is clear is that as a country we can no longer afford to give these discussions, because the possibilities of growth of all economic activities depend on these structural reforms and I think it is evident to all. When analyzing the tax burden of Argentina versus the main world exporters, the difference is highly significant. In Argentina, which has enormous potential for exporting food and drinks, the load is 40 to 50%. The United States, the main exporter, has 26% tax burden. There is no room not to give these discussions, regardless of the difficulties that dialogue and consensus possibilities may have.
Q.: If I had to choose something positive and something negative of this government, what would it be?
CMB: That the premises have been clear and they have kept us, as a sector, it gives us a work horizon on which we can build, regardless of the differences.
Q.: Does it refer to fiscal balance?
CMB: Exactly. It gives you the margin to determine which initiatives have feasibility and what initiatives have no feasibility. What is missing, it seems to me, is perhaps a greater dialogue.
Q.: How did the sector of rates affected the sector?
CMB: The rate rise has already generated that the credit is unfeasible for any of our companies. We understand that now the rates scenario has been adjusting and the idea is to always be able to move forward in regard to the access agenda to financing.
Q.: Have companies broken?
CMB: What has not changed is the investment initiative.
Q.: How much does the sector invest?
CMB: We have been registering investment ads throughout our history and in the last year we are talking about 2,000 million dollars. They are investment ads that we are relieving in different media or notifications of companies in the food and beverage industry.
Q: What do you expect for the country in the short term?
CMB: Continue improving and maintaining order and macroeconomic stability is fundamental. Combatting the poverty situation is something unlikely for all activities and all political, economic and legal actors.
Source: Ambito
