Argentina: Milei’s Government Continues to Undermine Regional Economy Businesses, Report Indicates

Original article: Argentina: Gobierno de Milei sigue hundiendo el negocio de las economías regionales, señala informe

A report from the Intercooperative Agricultural Confederation – Coninagro, the leading trade organization in Argentina’s agricultural sector, has raised concerns about a persistent downturn in regional economy businesses across the country.

This is measured using the Regional Economies Traffic Light, a monthly index that tracks the performance of 19 agro-industrial chains in Argentina, employing a color-coded system (green, yellow, and red) to assess the profitability and development status of each sector.

In May, the report recorded a majority of activities categorized as yellow (7) and red (8), with the worst forecasts observed in mate tea—a sector impacted by Milei’s deregulation—as well as rice, vegetables, cotton, wines and musts, peanuts, cassava, and dairy production.

«In most of these cases, the main issue lies in the business component: the prices received by producers have remained virtually stagnant or have increased below the rate of inflation and rising operating costs. This ultimately erodes profitability and hinders the recovery of these activities,» states the Coninagro report.

Other activities marked in yellow included forestry, tobacco, sweet citrus fruits, pears and apples, poultry, pigs, and potatoes, which were reported to show «mixed signals.»

«Prices have not kept pace with inflation, demand remained stable or with limited dynamics, and costs continued to be high. This combination has led to prolonged recovery periods and difficulties in establishing sustained improvements,» the report indicates.

We will continue to provide updates.