SanCor, a leading dairy cooperative in Argentina, is facing severe financial distress, with dairy producer Iván Castro alleging the crisis amounts to hidden bankruptcy due to mismanagement and a lack of transparency. Farmers and stakeholders are demanding urgent reforms.
SanCor, one of Argentina’s largest dairy cooperatives, is grappling with a deep financial crisis that has severely impacted its associated milk producers. The cooperative, headquartered in Sunchales, Santa Fe, has been struggling with mounting debts, and stakeholders are now demanding urgent reforms to prevent further deterioration.
Iván Castro, a dairy producer from La Carlota, Córdoba, has spoken out about the situation, alleging that SanCor is effectively in a state of hidden bankruptcy. He claims that mismanagement and a lack of transparency have worsened the crisis, leaving dairy farmers like himself in a precarious position. Castro’s family has been involved in dairy farming for over 30 years, with his late father, Carlos Castro, serving as a board member of SanCor from 2016 to 2019.
SanCor’s financial difficulties have been ongoing for nearly a decade, but the situation has become increasingly dire. As of the last fiscal reporting period ending September 30, SanCor recorded assets valued at ARS 80 billion, while its liabilities soared to ARS 251 billion. This includes over ARS 10 billion owed to milk producers, as well as significant debts to banks and employees.
Castro has accused the cooperative’s leadership of failing to take necessary corrective actions, instead adopting what he describes as “improvised strategies” to delay inevitable bankruptcy. He believes that SanCor’s recent filing for preventive insolvency is merely a tactic to buy time rather than a genuine effort to restructure the company. According to him, attracting investors or liquidating assets without a viable turnaround plan is unlikely to resolve the crisis.
The crisis has had a significant impact on local dairy producers, many of whom are struggling to maintain operations due to delayed payments and uncertainty surrounding SanCor’s future. The company’s leadership has yet to present a clear roadmap to recovery, further fueling frustration among farmers and industry stakeholders.
While the future of SanCor remains uncertain, Castro and other affected producers are calling for immediate reforms, greater transparency, and decisive actions to prevent the cooperative from collapsing entirely. Without intervention, many fear that the situation will lead to severe consequences for Argentina’s dairy industry and rural economy.
