Traditional Argentine Estancia Develops Unbeatable Business Model

The estancia "Las Carreras," located in the scenic Tafí del Valle in Tucumán, Argentina, stands as a prominent example of a highly diversified agro-industrial enterprise. This organization extends its operations across various agricultural sectors and geographical locations, including Tucumán, Santiago del Estero, and Buenos Aires provinces.

The company, SA Azucarera Justiniano Frías, has established a Jersey cow dairy in Tafí, producing cheeses that bear a Geographical Indication. Complementing this, they market Holando beef directly to consumers and leverage the stunning landscape by developing a tourism venture. Their agricultural reach is extensive, encompassing 500 hectares dedicated to potato cultivation for major brands like Lay's (under a contract with PepsiCo) and frozen fries for Lamb Weston. Additionally, 80 hectares in Tafí del Valle are used for seed potato production.

Further diversifying its portfolio, the firm cultivates 500 hectares of sugarcane in southern Tucumán and grows grains such as soy and corn in Tafí Viejo. These grains primarily support their comprehensive livestock operation, which begins with 1,200 breeding cows. The company also manages a dairy farm with 600 Holando Argentino cows in Trancas, northern Tucumán.

In a strategic move to enhance beef sales, the group partnered with other producers to open a butcher shop in Tucumán called "Nuestro Holando." This shop sells beef from their Holando steers, aiming to circumvent price reductions typically imposed by slaughterhouses on this breed. "The dressed weight yield of Holando is slightly lower than British breeds, but the meat quality is similar, with a low fat percentage," noted Julio Paz, the company's production manager. The group collectively slaughters 1,000 animals annually, with 300 originating from SA Azucarera Justiniano Frías.

The choice of the Jersey breed for the Tafí del Valle dairy was initially driven by a 100% pasture-based system requiring smaller animals adapted to the mountainous terrain. Emanuel López Lauría, who oversees the dairy operations, recalled seeking a Jersey cow suited to Tafí del Valle's limited pasture and challenging conditions. As the system evolved towards a more intensive, semi-confined approach with seasonal grazing, the need for animals with higher individual production and larger size became apparent.

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The dressed weight yield of Holando is slightly lower than British breeds, but the meat quality is similar, with a low fat percentage.