Pablo Plá: "San Miguel is committed to Tucumán, and we will continue investing here"

The CEO of the group, whose plant celebrates 70 years in the province, announced a $20 million investment for the next five years.

By Marcelo Aguaysol, La Gaceta de Tucumán

November 17, 2024

Three years ago, San Miguel underwent a strategic shift in its citrus operations. The goal of the business group, celebrating 70 years in Tucumán, is to ensure the business's sustainability in the long term, says Pablo Plá, the company’s CEO. This commitment goes beyond the crises that threaten one of Tucumán's key export activities. Over the next five years, San Miguel plans to invest approximately $20 million to expand its production. Plá reaffirmed the company’s commitment to the province, where it generates around 2,500 jobs, both direct and indirect.

"We are a group always thinking in the long term and are very proud of the journey we’ve had in Tucumán since 1954, when the pioneers planted the first seeds," Plá stated during a video call with *La Gaceta*. An expert in strategy who has guided five major companies before joining San Miguel, Plá emphasized this commitment while holding the Argentine flag in one hand and the *Macha* flag, a symbol of Tucumán, in the other. “I know our country’s history, and we all understand that Tucumán represents the cradle of independence. For us, it is a great honor to be part of this historic territory,” he said during the interview.

What does this 70-year journey in Tucumán mean for San Miguel?

We are very happy and want this journey to continue for many more years. Seventy years is a significant amount of time, and it demonstrates that we are a group that always thinks in the long term. There were many opportunities to leave or sell the company, but we were never interested. The investment group behind San Miguel (primarily the Miguens Bemberg and Otero Monsegur families, along with the South African holding African Pioneer Group, APG) wants to be here for the next 70 years. We are extremely proud of the journey, during which we’ve faced all kinds of challenges in Argentina. Despite everything, we’ve always found a way to keep the company on a growth trajectory in the long term, regardless of the difficulties we’ve encountered.

How is the company performing now?

Our company processes 240,000 tons of lemons in Tucumán, with a production capacity of 270,000 tons. That means we’re operating close to full capacity. We provide direct employment to 237 people and indirect jobs to about 2,300 workers across the production chain, including harvesting and industrial operations.

I have been in Tucumán for four years, and it is a great honor to be connected to such a historic province and to be responsible for a company with such a long-standing presence here. From my first day, I’ve felt this responsibility, and during this time, we had to redirect the company. It is a great pride to make this small contribution as the company’s CEO to ensure its sustainability for the next 70 years. This is very important to us—not just maintaining the 2,500 jobs but aiming to double that number. We are fully committed to sustaining those 240,000 tons of annual production and contributing to the community.

We also collaborate with NGOs, schools, and the “Talentos para la Vida” NGO, which trains teachers in both public and private schools. Moreover, we are committed to environmental conservation, working with the *Pro Yungas Foundation*. Much of our land is dedicated to preserving flora and fauna.

What about investments?

This year, we have invested approximately $4.4 million in continuous work on plantations and other operations. This ensures employment and ongoing production. Additionally, we have a five-year plan to invest around $20 million. We continue to work on 2,200 hectares, 450 of which consist of new plantations between one and three years old, requiring continuous investment. Every year, we renew 150 hectares to maintain peak productivity. This involves ongoing investment.

We operate a nursery producing 50,000 plants annually, incorporating cutting-edge technology and innovative practices, which we supply to local producers. All these efforts are part of the $4.4 million we continue to invest annually, reflecting San Miguel’s commitment to Tucumán.

How are you positioned in the global market?

We are the largest buyer of fruit from third parties, including small and medium-sized producers. We purchase 100,000 tons of lemons annually from 35 small and medium producers across the province, representing around 4,000 hectares of lemon plantations. Our presence is highly active, even with the strategic shift we’ve undertaken.

What is the nature of this strategic shift?

We exited the fresh fruit export business to focus entirely on the industry. Three years ago, we implemented a strategic change to ensure the company’s long-term sustainability. We decided to become world leaders in industrial lemon processing.

As part of this strategy, we exited the fresh fruit export business in Argentina and Uruguay, sold our operations in Peru in 2022, and also exited South Africa. Instead, we focused entirely on industrial production.

As I mentioned earlier, we continue producing in Argentina and investing in new plantations. In Tucumán, we produce 50% of the lemons required for our Famaillá plant, while purchasing the rest—100,000 tons—from local producers. Additionally, we opened new plants in Paysandú (Uruguay) and South Africa, each with a capacity of 100,000 tons.

How are you navigating the current oversupply affecting prices?

San Miguel’s goal as a long-term company is to establish a sustainable business model. The redirection we implemented in 2022 was aimed at achieving this. While we faced losses during those years, it was to build what we see today—a company operating in three countries, centered in Tucumán, committed to staying here for the next 70 years.

Many of our collaborators’ children, grandchildren, or relatives will have opportunities to grow and work at San Miguel.

How does the national government’s economic policy impact you?

I believe Argentina has an opportunity to achieve greater competitiveness, which goes beyond exchange rates. The government must do its part by creating a more competitive environment for businesses, with reasonable taxes and rates comparable to those faced by our global competitors.

On the other hand, companies must also contribute by being more productive and innovative to compete better in international markets. Collaboration among stakeholders, communities, employees, and collaborators generates a virtuous cycle. Together, we can deliver excellent products to our global customers, such as the fruit from Tucumán.

Looking ahead, the fresh fruit sector will see better years. We hope Europe will ease Argentine exports and that the same will happen in the United States. At the same time, we need Argentina’s costs to continue improving, supported by a government that reduces taxes affecting the sector.