Dánica will stop production at two plants due to a lack of imported inputs

The obstacles to imports due to the lack of dollars reach all sectors, and not just industrial ones, such as the automotive sector. The margarine and condiments manufacturer Dánica, from the Argentine capitals, reported that as of August 31st will stop production of their plants the lack of imported inputs.

“This situation it will affect more than 200 collaborators of the company in the production units of Llavallol, province of Buenos Aires, and Villa Mercedes, San Luis, “the company said in a statement. In the latter plant, the company produces the classic margarine Dánica, as well as other brands , like Manty.

In the Villa Mercedes plant they make condiments such as mayonnaise, mustard and ketchup, which have a strong presence on the shelves of supermarkets, among the cheapest brands.

Among the missing supplies due to import restrictions, the company indicated starch, palm stearin and PKO).

The company said it has already consumed all of its stocks of these products and that “the shortage of its marketing channels for mass and industrial consumption is imminent and the resulting impact on the country’s bakery and restaurant chains.”

The company said that since last November they have been posing to the government (“at different levels”) the problems of obtaining supplies from abroad. They indicated that they had told the authorities in advance that, “if access to foreign currency for the import of inputs is not authorized, there would be a shortage of stocks and a consequent shortage of supplies to the domestic market”.

Dánica was acquired in 2018 from Cordovan Beltrán Group, which also has refrigeration activities. It specializes in consumer products (margarine and condiments) but also in the supply of fats for bread-making and the food chain.

“The shortage in this case will be particularly critical for the production of bakery and gastronomy products, as well as an input for packaged products such as biscuits, pastries, pastries, among others,” the note reads.

To the problems of the shortage of supply are added trade union conflicts that the company had last year, when it was forced to temporarily close its dressing plant in Villa Mercedes, having failed to reach an agreement with the local Society of Oil Producers (SOEAD) due to the of employees.

Since acquiring Dánica, the Beltrán group has asked to change the structure of its workers to that of the food industry, whose wages are lower. Neither the San Luis Ministry of Labor nor the Ministry of the Nation accepted this claim.

But at the Llavallol plant they reached an agreement with the union that brought the wage increases back to a year ago. With the trade union branch of Villa Mercedes, on the other hand, the deal was initially delayed. Finally, months later, the peace was signed.

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