Economy Politics Local 2025-12-01T13:23:03+00:00

Argentina's Bakery Sector Crisis: 1,800 Shops Closed

Argentina's bakery sector is in crisis, with 1,800 shops closing and 15,000 jobs lost due to soaring costs and plummeting demand. President of the Merlo Bakers' Center warns of an unsustainable situation.


Argentina's Bakery Sector Crisis: 1,800 Shops Closed

The president of the Merlo Bakers' Center, Martín Pinto, denounced the closure of 1,800 bakeries across the country and the loss of more than 15,000 jobs in two years due to rising costs and falling demand. Pinto stated that the sector is "always working at a loss" and is merely "subsisting". In an interview with Radio Splendid, the baker compared the current situation with adverse historical periods (the pandemic, the 90s, and 2001), stating that "it is nothing compared to what we are living today". While bakers have to face this constant increase, the sector experienced a 55% drop in sales, added Pinto, who noted that electricity bills recorded an increase of between 45% and 50% compared to the previous month. This combination makes it "impossible to sustain" operations, as the sector cannot "lose money".

"While everything is still going up, people's wages are a year behind, which means that raising prices does not reverse the drop in sales," Pinto stated. He also affirmed that it is "impossible to absorb these costs without passing them on to the price". Demand is affected by low purchasing power, as "people today buy what they can and not what they want" because they have no money in their pockets. Pinto analyzed that the underlying problem is that cost increases have not been accompanied by a salary increase.