Verónica Dairy, a leading dairy company in Argentina, is facing severe financial difficulties with bounced checks worth 465.1 million pesos and a mounting debt of 9212 million pesos. The crisis highlights ongoing struggles within the Argentine dairy sector.
Verónica Dairy, a prominent Argentine dairy company based in Santa Fe, reported financial distress as it recorded 143 bounced checks worth 465.1 million pesos, according to the Central Bank of Argentina (BCRA). The company, founded in 1923 by the Espiñeira family, has long been a key player in the country’s dairy sector.
Rising Debt and Banking Challenges
Verónica Dairy’s financial crisis extends beyond bounced checks. The company holds a significant bank debt of 9212 million pesos, with major creditors including Banco Nación (24.7%), CMF (16.7%), and Banco Galicia (15.6%). Despite successfully restructuring its liabilities in 2019 under a preventive crisis procedure, the company is once again facing financial instability.
Industry Disparities and Market Standing
Despite its financial troubles, Verónica remains a major dairy processor in Argentina, ranking ninth nationally in the 2023/24 rankings by the Milk Chain Observatory (OCLA), processing over 620,000 liters of milk daily. However, its struggles contrast sharply with competitors like Mastellone Hnos, which reported a net profit of 37,719 million pesos in the first nine months of 2023.
The financial difficulties of Verónica Dairy reflect broader challenges in Argentina’s dairy industry, including economic instability, inflation, and fluctuating market demand. The company’s ongoing struggles raise concerns about the future of dairy production and financial sustainability in the region.
