It was a speech that lasted more than an hour and a half. Had three thematic blocks and various definitions of macroeconomics, reserve accumulation, and the past and coming ups and downs in Congress. This is how Javier Milei closed the leaders meeting he organized The Chronicler at the beginning of the month, which was attended by more than 60 CEOs from all industries. Below, Gabriela Benac, Owner of the Luz Azul dairy company in Buenos Aires.
After the president’s presentation ended, the businesswoman decided to write him a private message, which she later distributed: “Javier, why are you answering economists when I don’t care who they are? Talk to us entrepreneurs and those of us who work.”.
“In times of inflation, problems are left under the carpet and deviations are hidden by price increases. But this year everything had to become more finite,” says the businesswoman in an interview with El Cronista. “If there is no reactivation of consumption where we can raise prices, this will not be sustainable. This context will lead several dairy companies to critical situations,” Benac added.
a decade ago, Blue light It was a dairy that employed 15 people, processed 14,000 liters of milk per day and was about to close. In 2012, Benac took over the company, which at that time was run by, through a lease agreement with an option to purchase Electric Cooperative of the City of Azul. Today the company has 70 points of sale between franchise companies and your own premises. However, he warns that profitability has “vanished” over the last year.
How do you assess your company’s performance in 2025?
Profitability has virtually disappeared. Both from the company and the franchisees. We haven’t increased prices in seven months and obviously all costs have increased. From labor, taxes, services to the milk itself. The equation doesn’t work because we reduce profitability. And that has a limit, it is untenable.
How much did the sell-off fall?
This year it fell sharply. In terms of kilos, we sold between 20 and 30% less compared to the previous year. Consumption declined for all bulk foods, not just dairy. There is no way to restore it. We see that people can’t afford it and Argentina is expensive. The equation does not indicate the wage earner either.
How can they survive without raising prices?
We get into debt. We took out some loans and converted the franchises that couldn’t survive into our own stores. It was a difficult decision and, above all, very expensive as you had to hire staff, extend the rental agreement and also the takeover costs. But today we are not allowed to sell even a single kilo of cheese. We sustain it with the power of hope.
How many spaces have they absorbed?
We started the year with a total of 70 sales outlets. Five solos were his own; The rest are franchises. We will end the year with 13 of our own branches, which is why we have taken over seven more branches. It was the most difficult decision of the year because we started with twice the risk. But losing sales was not an option.
How do you organize your production in view of falling sales?
We have overstock. We have a lot of goods stored. In fact, we have reached the limit of the refrigeration capacity we have available to store the goods and we have even had to resort to renting chambers and containers to continue storing the products. The lack of sales and production, particularly in spring and summer when cows are most productive, is compensated for by the accumulation of stocks.
What solution do you see for this situation?
Unless there is a reactivation of consumption where we can raise prices, it will not be sustainable. This context will lead several dairy companies into critical situations.
What do you think about the bankruptcy of historic dairy companies like La Suipachense or ARSA?
There were two important factors. Firstly, we recognize that they have been very poorly managed over many years. Secondly, it must be taken into account that in times of inflation, problems remain under the carpet and deviations are hidden by price increases. This year, however, everything had to become more finite, cutting costs and adding technology to increase efficiency. A poorly managed company cannot endure this situation. In fact, dairy company bankruptcies will continue to occur.
Inflation is undoubtedly the worst thing that can happen to us. But during the time it develops, it is rather unnoticeable. Now that inflation is minimal, companies need to be very well organized and all internal processes need to be rethought.
How do you see the possibility of exporting today?
There is currently an oversupply of milk worldwide. This reduces the demand for this type of product. This is also complemented by a low and stable dollar in Argentina, making exports more complex and no longer competitive with today’s international prices. Argentina is expensive. This is one of the reasons why prices cannot be increased either. The external market does not offer competitive prices.
So what was your plan to export both your franchise model and your products to the region?
It will resume as soon as the conditions are met.
What have you done this year to improve your efficiency and productivity?
Two years ago, we made a productive investment of nearly $1 million by modernizing our facility, allowing us to continue to process more liters with the same number of employees. This was the first step in reducing our costs. Additionally, we have introduced technology across most areas of the company to achieve much more control with fewer staff.
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