JBS SA is cutting Argentine exports to focus on domestic sales after government restrictions prompted a plant closure. The facility in Venado Tuerto will be closed, and more than 500 workers will be fired, reports Business Week.
JBS plans to reduce exports to about a third of total sales in Argentina this year, from about half two years ago, local CEO Artemio Listoni said in an interview in Buenos Aires. Two-thirds of sales will be destined for the local market, he said. Price and Export limits made the Argentine facility unprofitable, her added.
In addition to a 15 percent beef export tax, government quotas require companies to sell 1 kilogram of meat (2.2 pounds) in Argentina at about 40 percent of the market price for every 2.5 kilograms exported, he said.
Source: Business Week