What role does Mirgor play in Argentina and in the agro industry?
Mirgor is a company that has been in the market for more than 40 years, but our agro vertical is relatively new. We began this vertical in 2018 after a strategic planning process and formally started operations with volume in 2020. The goal was to enter a sector where we could leverage our industrial expertise. While we started with commodities trading, we quickly specialized in adding value through industrial processes, which is where we feel most comfortable.
Currently, we are developing several activities in the agro vertical, with two major projects at the forefront. One involves converting vegetable protein into animal protein—essentially integrating the process from agricultural production to the industrialization and export of animal protein. The other project focuses on producing malt from barley for export. Beyond these, we engage in various commercial operations, from grains to commodities, always partnering with key market players and applying advanced industrial knowledge to the sector.
You mentioned technology playing a role in various industries. Do you see a similar technological inflection point in agriculture that could revolutionize the sector?
Absolutely. The impact of technology on agriculture is transformative. The industry operates on extremely small margins with long investment recovery periods. Every efficiency gained through technology helps improve profitability and sustainability, making agro more competitive globally. Argentina, in particular, has made significant advances in agricultural machinery, artificial intelligence applications, and precision farming. These innovations are already revolutionizing the sector, not just theoretical changes for the future.
The way technology is being integrated into agriculture today is similar to what we have seen in industries like oil and mining. The challenge lies in leveraging these technologies effectively to make agricultural processes more efficient and to enhance productivity while maintaining sustainable practices. Argentina is well-positioned to lead this transformation with its strong technological capabilities and expertise.
You mentioned that the agriculture industry has small margins. How do you see Argentina’s recent political and macroeconomic changes affecting the sector in the coming years?
Most business leaders in Argentina would agree that the changes we are experiencing are positive. The industry thrives on predictability and macroeconomic stability, and the new environment provides a framework where businesses can develop with greater confidence. Stability allows companies to plan long-term, invest in infrastructure, and optimize operations without the fear of sudden policy shifts that could disrupt business.
Of course, any transition comes with challenges. Argentina has experienced extreme economic volatility in the past, which makes companies cautious. While the current economic opening presents short-term risks, it also offers long-term opportunities. If we can improve competitiveness, the market expands from 50 million people to the entire world. The key is ensuring that domestic industries are prepared to compete before fully opening the market. Ideally, the process should be structured to strengthen Argentine businesses first before exposing them to full-scale global competition.
With economic liberalization moving forward, what are the biggest challenges for local industries like yours?
One of the biggest challenges is taxation. Due to Argentina’s historically closed economy, the government has relied heavily on a complex tax system to sustain public finances. This creates an uneven playing field when competing against imported products that are not subject to the same taxes. For example, if a foreign company can bring in a product via courier without paying gross income tax, municipal taxes, or security fees, it instantly gains a competitive advantage over domestic manufacturers.
The issue is not about avoiding competition but about ensuring a fair playing field. If tax adjustments can be made to level the competitive landscape, Argentine industries can thrive. We have state-of-the-art production facilities, particularly in places like Tierra del Fuego, where international technologists recognize our capabilities. The challenge is to make the local environment conducive to industrial growth rather than forcing companies to compete under inherently disadvantageous conditions.
Speaking of Tierra del Fuego, what do you think about the current regime there, and do you foresee any changes under the new government?
The regime in Tierra del Fuego is similar to industrial promotion regimes worldwide, such as Maquila in Mexico or Manado in Brazil. Many countries use incentive structures to develop their industries. The key is ensuring that these policies drive genuine industrial capability rather than just short-term protectionism.
So far, we have not seen any direct attacks on production regions like Tierra del Fuego. The government is focused on opening the economy and creating a more competitive environment. While this presents challenges, it also creates opportunities for companies willing to adapt. We are already working on process improvements with the government to enhance efficiency in manufacturing, reduce tax burdens, and make Argentine production more competitive globally. The debate around Tierra del Fuego will continue, but we believe it remains a strategic asset for the country.
Looking at Argentina’s broader economic potential, what is your vision for the future of the agro industry?
Argentina has the potential to be a global agricultural powerhouse, but there are structural issues that need to be addressed. Other countries in the region, like Brazil and Paraguay, have optimized their agro industries more effectively in recent decades. Argentina has lost valuable time and now needs to implement policies that encourage growth, investment, and efficiency.
The idea that agro and industry are in opposition is a false debate. Argentina has the unique advantage of being strong in both sectors. Instead of prioritizing one over the other, we should be leveraging both to create a more diversified and resilient economy. The key is finding the right balance and ensuring that both agro and industry receive the support needed to scale up and compete globally.
What are Mirgor’s main objectives for the next 5–10 years?
Success in business, as in life, is about timing. Being in the right place at the right time with the right strategy is crucial. Over the next decade, our primary goal is to scale operations significantly, particularly in the agro sector. Given the small margins in agriculture, achieving scale is essential. We need to increase production volumes rapidly while ensuring efficiency and sustainability.
Another core objective is strengthening human resources. The most significant growth constraint for any company is not capital but talent. Investing in our people and fostering innovation will be critical to our long-term success. If we can build the right team, make strategic decisions at the right moments, and leverage Argentina’s industrial and agricultural strengths, we believe Mirgor can expand dramatically in the coming years.
How would you explain Argentina’s agricultural potential to an international audience, particularly considering the comparison to other industries like energy?
Agustin Ayerza (Mirgor Agro): Argentina has an extraordinary mix of natural resources, human resilience, and industrial capacity. The country has already demonstrated its ability to be a leader in agriculture, but the potential is far greater than what has been realized. Agro exports have remained relatively stagnant, but there is immense room for growth if the right policies and investments are made.
If I had to explain Argentina’s strength in one word, it would be resilience. Argentines are used to navigating volatility and finding creative solutions to challenges. This adaptability, combined with natural resource wealth, makes the country uniquely positioned for success. The key is unlocking this potential by fostering a business environment that allows both agriculture and industry to thrive on a global scale.
