Good day to all the Chinese friends working hard in Argentina, today we are going to talk about the Argentine sugar giant Ledesma and the family behind it, the Blaquier family.
Argentina produces over 2 million tons of sugar each year, and the cookies, seasonings, candies, and more that we consume are all reliant on sugar. Sugarcane is a remarkable resource; it can be used to make paper, fuel, and even extract alcohol for beverages and perfumes. However, when it comes to Argentine sugar, the first brand that comes to mind is undoubtedly Ledesma. This company has established a vast empire in the province of Jujuy, with countless factories and thousands of employees, even having its own town! The Blaquier family, who owns this company, is one of the top ten wealthiest families in Argentina. How did they gain such immense power? Today, we will delve into the story of Ledesma and the Blaquier family, and it is not as sweet as sugar; we will also discuss its lesser-known “dark” history. Are you ready? Let’s get started!
Chapter One: The Diversified Operations of Ledesma Group – The Sweet Business Behind
When mentioning Ledesma, most people might first think of sugar. However, it is actually a diversified agricultural and industrial group with over a century of history, with its core business located in the Ledesma region of Jujuy province. Although the sugar industry is the foundation of Ledesma, they own 40,000 hectares of sugarcane plantations and sell over 300,000 tons of sugar annually. The Ledesma and Domino brands together hold 17% of the Argentine market share, making them the second-largest sugar producer after the Los Balcanes group. Surprisingly, only 70% of the sugarcane they harvest is used for sugar production, while the remaining is used to produce alcohol. Most of this alcohol is used to produce bioethanol, and since 2010, through collaboration with Bioledsma, Argentina’s gasoline has been mandated to contain 12% biofuel, such as sugarcane bioethanol. The remaining alcohol is sold to beverage companies, pharmaceutical factories, and perfume companies.
But that’s not all. Bagasse and molasses are by-products of the sugar production process. Molasses is used to produce alcohol, while bagasse is a fiber that can be used to make paper. Ledesma is also a giant in the paper industry, holding 40% of the market share, producing 130,000 tons of packaging paper and over 12,000 tons of notebooks and replacement pages annually, with well-known brands such as Gloria, Éxito, Avon, and of course, Ledesma. They even have a distribution company named Castinvest, which supplies paper to the entire printing industry.
If that’s not enough to surprise you, Ledesma also owns over 3,000 hectares of orange, grapefruit, and lemon plantations in Jujuy and Salta provinces. They process 80% of their harvest into concentrated juice and essential oils, which are then exported worldwide. For example, they have a long-term supply contract with Coca-Cola to provide citrus raw materials, which lasts until 2042! Additionally, Ledesma owns 50,000 hectares of land in Buenos Aires and Entre Ríos provinces for cattle and grain farming, and has shares in the Aguaragüe oil and gas field in Salta province, collaborating with energy giants such as YPF, Tecpetrol, and Pampa Energía.
All these businesses belong to the Ledesma Group, which owns over 150,000 hectares of land and achieved a net profit of 39.16 billion pesos in 2024! So, who exactly controls this vast business empire?
Chapter Two: The Blaquier Family – The Power Behind the Sugar Empire
When talking about Ledesma, one cannot forget the Blaquier family. According to Forbes magazine, the family’s wealth is estimated at $1 billion, more than doubling since 2020. Since 2013, Charlie Blaquier has been the head of the company, but in 2024, he handed over power to his brother Alejandro Blaquier Riera. They are the children of María Elena Riera and Carlos Pedro Blaquier. María Elena Riera is the true heir of Ledesma, while Carlos Pedro Blaquier led the company for over 40 years. Remember the name Carlos Pedro Blaquier, as we will discuss him in detail later, including how he led the company to significant growth in the 70s, 80s, and 90s, as well as his involvement in some cases, especially during Argentina’s military dictatorship.
However, before delving into the Blaquier family, let’s take a look at the historical origins of Ledesma. The company’s history dates back over 200 years. The origins of Ledesma Sugar Mill can be traced back to 1830 when José Ramírez Ovejero from Salta province began producing sugar and sugarcane liquor. José’s sons Sixto Ovejero and Querubín Ovejero inherited his business and partnered with their cousin Ángel Cerda. Over time, the company produced more sugar, and the family’s political influence grew. Although their business was in Jujuy province, Sixto Ovejero, his son David, and Ángel Cerda ruled Salta province for nine years. Furthermore, with the extension of the Central Northern Railway to Tucumán in 1876, they were able to import machinery and improve production efficiency. It wasn’t until 1908 that they officially registered Ledesma Sugar Mill as a joint-stock company. However, they soon realized they did not have enough funds to maintain the company’s competitiveness and decided to sell the company in 1911. Ledesma was eventually acquired by Germans Enrique Wollmann and Frenchman Carlos del Casse, who successfully raised the necessary funds. Wollmann arrived in Argentina in 1881 as a representative of European banking institutions and obtained a loan from Lazard financial company. Del Casse was a lawyer closely associated with a French bank that also provided funding. Through this investment, they increased machinery, purchased new sugar presses, and improved production capacity. However, it should be noted that many historical documents, news archives, and testimonies indicate that for decades, the sugar mill exploited the labor of local indigenous people, such as the Wichí, Toba, and Mataco, who worked long hours for very low wages.
Chapter Three: The Arrieta Era – Expansion and Diversification of Ledesma
In 1923, a young man named Herminio Arrieta began working at Ledesma. This young man from Tucumán quickly won Wollmann’s trust and soon married his daughter Paulina Wollmann. After the death of Enrique Wollmann in 1927, Herminio Arrieta became the head of the company. Ledesma thus entered a new phase of development. In the 1930s, Arrieta began purchasing surrounding farms to expand the company’s land. In this way, he secured the water sources needed for irrigating crops. In many articles and books, Herminio Arrieta is described as a strict and hard-working person. It is said that air conditioning was only installed in the company office after his death! Over time, he not only became a successful entrepreneur but also ventured into politics, serving as a deputy and senator in Jujuy province and leading the local conservative party, the People’s Party. Meanwhile, Arrieta continued to expand Ledesma’s business. In the 1950s, he initiated a project to produce paper from leftover bagasse, and in the 1960s, with the opening of the Northern Gas Pipeline, which provided the energy needed for the paper mill, Ledesma successfully weathered the sugar crisis of the 1960s. It is said that the sugar crisis at that time was partly due to overproduction leading to falling sales prices, and partly due to political factors. After the military coup in 1966, many sugar mills in Tucumán province were closed, with some believing this was to reduce sugar production to raise prices, while others thought it favored sugar mills in Jujuy and Salta provinces, such as Ledesma, Tabacal, and La Esperanza. Regardless, under Arrieta’s leadership, Ledesma’s sugar production doubled, alcohol production increased twofold, and new production of paper and cellulose was added.
Chapter Four: The Blaquier Family Emerges – The New Generation of Leaders
Within Ledesma, speculation arose about who would inherit Herminio’s legacy. He and Paulina had only one daughter, María Elena Riera, known as Nelly. From a young age, Herminio took Nelly to see the sugarcane fields and the production process, teaching her the ways of business. He often told her, “If you do not understand everything that happens in your company, you will go bankrupt.” Everything seemed to be preparing for Nelly to take over the company in the future. However, history sometimes repeats itself, and another ambitious son-in-law appeared on the scene.
In 1950, Nelly met Carlos Pedro Blaquier. The two fell in love and married in 1952. Carlos was a promising young lawyer from a wealthy family, working in the courts while managing some farms in Roque Pérez. After their marriage, this son-in-law was determined to learn everything about Ledesma; he studied sugarcane cultivation and proposed new business ideas. Ultimately, after Herminio’s death in 1970, Carlos Pedro Blaquier became the president of Ledesma. Today, the Blaquier name has become synonymous with Argentina’s upper class. By the way, I recommend a book by Soledad Ferrari titled “The Blaquier Family,” which I read during my vacation; it is very interesting and contains many stories about this family. However, this family has not always been part of Argentina’s elite. The Blaquier family is of French descent, but the first to arrive in Argentina was Carlos Pedro’s great-grandfather Juan Antonio Blaquier González, who came from Vigo, Spain. They were not initially wealthy, but in the early 19th century, they began to integrate into the emerging elite through agricultural-related business activities. Carlos Pedro’s uncle and great-uncle began to marry into the noble families of Argentina at that time, such as Luis Blaquier Oromí, who married Elisa Roca, the daughter of Julio Argentino Roca, and his brother Juan José Blaquier, whose wife was Amalia Anchorena, the heiress of one of the wealthiest families in Argentina. Through these marriages, they established connections with families such as Casares, Lynch, de la Martona, and Bongiorno.
Chapter Five: Expansion and Controversies of the Blaquier Era
As I mentioned earlier, in 1970, Carlos Pedro Blaquier took over as president of his father-in-law’s company. He referred to himself as the “King of the Sugar Industry.” During his more than 40 years at the helm, Ledesma’s expansion far exceeded that of the Arrieta era. Sugar production doubled, alcohol production increased twofold, and paper production quadrupled. Blaquier not only drove Ledesma’s tremendous growth on a technical level but also established Castinvest in 1982, a company dedicated to the sales and distribution of paper, becoming a supplier for the printing industry. A year later, he established Glucovil in San Luis province, a corn wet milling factory producing glucose syrup and fructose syrup, primarily supplying beverage companies that no longer used cane sugar. In 2008, agricultural giant Cargill also became a partner of Glucovil. Ledesma’s business continued to expand, opening concentrated juice factories in the 1990s, entering the pig farming industry in 1992 through Pacuca, and acquiring Grafex San Luis in 1994, which produced notebooks. In the same year, they also ventured into the energy sector, acquiring shares in the Aguaragüe oil and gas field.
However, large enterprises like Ledesma inevitably become embroiled in various controversies. One of the controversies relates to environmental pollution, particularly the dust from bagasse, which can lead to bagassosis, a severe lung disease. Over the years, many of Ledesma’s employees, former employees, and local residents have complained of suffering from this disease. Another issue is the illegal settlements on company land. In 2011, this issue escalated, leading to evictions and violent conflicts, ultimately resulting in the government expropriating over 40 hectares of Ledesma’s land for housing construction. Like Tarraguy, which we discussed earlier, Ledesma has also established its own town, complete with housing, a cinema, and a hospital, as it employs over 5,000 people in its agricultural and industrial complex. Additionally, there have been complaints for years about Ledesma’s low wages. In 2021, media reports indicated that between 2008 and 2018, the company had underpaid over 1.2 billion pesos in pensions and social benefits through various means.
Chapter Six: The “Close” Relationship with Dictatorship – The Blaquier Family’s “Dark” History
However, none of these controversies can compare to Ledesma’s connection with Argentina’s last military dictatorship. This history has left an indelible mark on the company. In November 2012, Carlos Pedro Blaquier was prosecuted for illegal deprivation of liberty, related to the kidnapping of 29 workers between March and July 1976. The case accused him of playing a key role in the so-called “blackout night” incident. During those days, power supplies were cut off in some towns in Jujuy province, leading to the kidnapping of over 400 people, many of whom were associated with the sugar workers’ union. Many witnesses and survivors reported that the trucks used for these kidnappings bore the Ledesma company logo. Soledad Ferrari writes in her book that Ledesma provided lists and logistical support with the aim of destroying the sugar workers’ union. Furthermore, Blaquier had close ties with politicians, which also benefited his business interests. He had a close relationship with Jorge Zorreguieta, the father of the current Queen of the Netherlands, Máxima, who served as the Minister of Agriculture during the dictatorship. Zorreguieta later became the president of the Argentine Sugar Center from 1984 to 2008.
The case was reopened in 2012 when police searched Ledesma’s properties and offices, leading to the prosecution of Carlos Blaquier. The following year, the prosecution was confirmed, and Carlos Pedro resigned as president of the company. He has always denied all allegations, claiming that Ledesma was never responsible for the power supply in the city or nearby towns, and that those trucks were donated to hospitals many years ago. However, in 2015, the Federal Criminal Appeals Court ruled that there was insufficient evidence against the entrepreneur, and he was not prosecuted. It wasn’t until 2021 that the Supreme Court overturned this ruling and sent the case back to the appeals court for retrial. By that time, Blaquier was already 94 years old, and the Federal Oral Court of Jujuy stated that he was unfit to stand trial. Meanwhile, in 2022, another shocking scandal emerged, revealing that Carlos Pedro Blaquier was a VIP client of a notorious yoga school in Buenos Aires, which was actually not related to yoga, and whose head is currently accused of money laundering, human trafficking, and illegal association. Carlos Pedro Blaquier ultimately passed away on March 13, 2023, at the age of 95, but he was never tried for any of the aforementioned charges.
Chapter Seven: The Heirs of the Blaquier-Arrieta Family
After a long historical review, let’s take a look at the current state of Ledesma. Over the years, the strategic management of the company has been handled by a board of directors, primarily composed of members of the Blaquier family, who hold over 90% of the company’s shares. Nelly Arrieta, the true heir of Ledesma, has never participated in the company’s daily operations; she has devoted herself more to the arts, being a patron and collector, and even served as the president of the Friends of the Buenos Aires Museum of Fine Arts Association. Nelly passed away in November 2020 at the age of 89, and her five children inherited her estate. They are now members of the Ledesma board of directors, making decisions about the company. In 2013, Carlos passed the presidency to his son Carlos Herminio Blaquier Riera, known as Charlie. In 2024, Charlie also retired, passing the position to Alejandro Blaquier Riera, known as Andri. The board also includes their brothers Santiago Blaquier Riera and Ignacio Blaquier Riera. Additionally, new generations of family members have joined the board, such as Charlie’s son Carlos Alberto Blaquier and Mimi Blaquier Riera’s son Juan Ignacio Pereira Iloura.
Chapter Eight: New Energy and New Business – The Future Path of Ledesma
In recent years, Ledesma has focused more on strategic adjustments. They first concentrated on their core business, dissolving the renewable energy company Ledesma Renovables established in previous years. Between 2018 and 2020, they sold their corn wet milling business for over $100 million. One of their goals is to reduce their massive debt. However, two aspects are particularly noteworthy: one is the lithium industry, where Ledesma is a key player in producing caustic soda and hydrochloric acid, both essential materials for extracting lithium from salt lake brines, and Argentina’s lithium industry has immense potential, with Ledesma holding an important position in this field. The other new business is tableware. In 2023, Ledesma invested $4 million to establish a thermoformed product factory that produces tableware from bagasse. It is reported that the first batch of this biodegradable tableware will be launched by the end of 2024.
Chapter Nine: Conclusion – The Complex Legacy of Ledesma
Ledesma is a massive enterprise involved in production, export, controversies, and a wealthy family. Its history is long and filled with ups and downs. From the initial sugar mill to today’s diversified group, Ledesma’s development is closely linked to Argentina’s history. However, its growth has also been accompanied by controversies such as labor exploitation and connections with dictatorship. The wealth and power of the Blaquier family are striking, but they also face scrutiny and questioning from all sectors of society.
For our Chinese friends doing business in Argentina, the story of Ledesma provides a complex case study. It showcases how a family business can establish a vast industry in Argentina while also revealing the ethical and political issues that may arise in the pursuit of business success. Understanding the history of Ledesma may help us…