Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
A-Brands

Argentina Accuses Danone, P&G, Unilever Of Output Curbs Amid Pricing Crackdown

Argentina is investigating consumer firms including Danone, Procter & Gamble and Unilever, along with food producers like Bunge, over accusations that they have deliberately held back production amid a government clampdown on rising prices.

The country's production ministry in a statement alleged that the firms and others had been "holding back production volumes" and had not abided by a resolution to increase output to the "highest degree of their installed capacity."

It said an investigation had found shortages in supermarkets of products ranging from cooking oil to diapers and cheese, and said that the firms under investigation must rectify the situation and restore stock levels.

The companies did not immediately respond to emailed requests for comment.

High Inflation

The South American nation's leaders have been trying to protect consumers from rising prices and rein in rampant inflation, forecast in a central bank poll to hit 50% this year.

The government of Argentine President Alberto Fernandez has clashed with some businesses and investors over price caps on some goods and the freezing of utilities tariffs.

On Wednesday, holders of Argentina's sovereign debt criticised such policies as short term and doomed.

The production ministry said that price cap laws aimed to protect consumers from "possible price abuses and guarantee the normal supply of products in supermarkets."

Recent fears over resurgent inflation sparked tension between Argentina's government and the large farm sector, which were eventually defused after pledges by exporters and producers to help keep domestic prices down.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days