The Minerva-Marfrig operation can generate an oligopoly, warned Guillermo Domenech

The Minerva-Marfrig operation can generate an oligopoly, warned Guillermo Domenech
November 2, 2023 – 17:56

The senator from Cabildo Abierto assured that “meat is the flagship of Uruguay” and was concerned about the operation.

The senator of Open Town Hall, Guillermo Domenech, referred to the purchase of three refrigerators Marfrig that seeks to specify Minerva and warned that this operation “can generate an oligopoly”, a situation that he considered “not favorable” for the meat, which he described as “the flagship of the Uruguay”.

The legislator thus expressed his concerns about the acquisition, which will be defined by the Commission for the Promotion and Defense of Competition, dependent on the Ministry of Economy and Finance (MEF). “The meat It continues to be the main exportable product. The concentration of ownership is not favorable in any aspect,” he stated. Domenech and considered that “it can put a significant part of the main production of the Uruguay in the hands of a foreign company”.

The operation, which could leave 60% of the exports meat for Minerva, It would leave the Brazilian firm in a “dominant situation,” according to warnings from different sectors. In this regard, the lobbying legislator stated that, if the purchase is ratified, “the main business of the country and consequently the most important entry of foreign currency will be at the discretion of a company that will dominate a very significant portion of the total movement.” in the matter”.

Among the risks, Domenech assured that “the workers will have a single boss who will manage the work”, but he also noted objections for the government. “The company can manage unemployment insurance in such a way that it is a great expense for the country and it goes without saying that the sale of our meat on the international market will be managed by a multinational company,” he noted.

The Rural Federation spoke out against

Faced with the barrage of criticism from different sectors, the Rural Federation recently presented alternative proposals like a export less restricted walking, by ensuring that the operation would have negative consequences for producers.

In the agricultural sector they believe that endorsing the purchase would be risky and seek to put a stop to the purchase of Minerva to Marfrig. In parallel, they assure that, if the transaction is finalized, the government should present escape alternatives for producers.

Source: Ambito

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