Granja Tres Arroyos, the main poultry company in Argentina, decided close the production plant in the town of Tristán Suárez in the former Red Crescent. Next Thursday will be the last day of operations, but the truth is that its workers warned that for months they have been working well below average.
The measure will affect about 200 workers and, according to the firm, the decision responds to the drop in sales in the international market, mainly because the reopening of the Chinese market has not yet been achieved after an outbreak of avian flu was declared in the country in 2023.
Specifically, The production plant of the former Red Crescent focused its business on exports, but the absence of the Chinese market ended up complicating its basic business.. On the other hand, although the company denies it, the reality is that the internal market is not experiencing growth either, so the establishment’s production did not find a sure buyer.
Another key fact is that Gran Tres Arroyos took over the operation of this plant and another located in Ezeiza, after the bankruptcy of the Cresta Roja firm was declared in 2018. At that time, the poultry giant began a process to “clean up” the operation and also moved forward with the dismissal of workers. Within the business plan, it aimed to grow in slaughter and exports, something that ultimately did not happen.
Chickens. The price of chicken fell 4.6% in May and production increased 6%, which generates an oversupply in the domestic market.
Chickens. The price of chicken fell 4.6% in May and production increased 6%, which generates an oversupply in the domestic market.
Currently, the workers affected by the measure denounce that Granja Tres Arroyos has been cutting production hours for months and that it was also not investing in the basic maintenance of the slaughter plant. On the other hand, the establishment located in Ezeiza would be operating normally.
Besidesthe closure of the establishment would not entail the sale of the facilities because, according to what the industry indicates, Tres Arroyos’ plan is to maintain them so that in the event that the Chinese market reopens, they can resume production but with a smaller number of employees.
Granja Tres Arroyos, led by businessman Joaquín de Grazia, is the undisputed leader in the Argentine poultry business, it processes 760,000 chickens per day in Argentina and 40,000 in Uruguay, it directly employs around 6,500 people and has a turnover of around US$1. 300 million.
Meanwhile, The plants of the former Cresta Roja have a long history in which they were even declared bankrupt twice, in 2014 and 2018, and even the Government of Cristina Fernández de Kirchner, first, and that of Mauricio Macri, later, tried to advance with different plans to rescue your operation. Only in 2018 with the entry of Granja Tres Arroyos did it seem that a better stage was beginning for its workers, but with Covid and then avian influenza all investment and expansion plans were frozen. Now, with the government of Javier Milei, the closure of one of the establishments came.
Source: Ambito