The major Argentine soy crusher Vicentin has halted operations at most of its facilities as the country works to restructure its debt after defaulting earlier this month, three industry sources with direct knowledge of the situation told Reuters. This means the company has halted crushing at its two wholly owned processing plants; it is still crushing at its Renova plant that is a joint venture with Glencore Plc.
The company is Argentina’s top exporter of processed soy and an iconic brand. Last year, Vicentin exported 4.4 MMT of soymeal and 929,000 MT of soyoil. Argentina is the world’s top exporter of soymeal and soyoil.
Vicentin has not disclosed how its debt situation became so problematic, but interest rates are soaring in the country and Argentina is in the midst of a major recession.
The Rosario grains exchange sent a letter to member “lamenting the serious problems caused by Vicentin’s non-payment of debts and other obligations.”