Uruguayan Government Considers Covering Calcar's Debt
Source: dairynews.today
The Uruguayan government is contemplating stepping in to cover up to 40% of the $2.5 million debt owed by the now-defunct dairy cooperative, Calcar, to its producers.
The Uruguayan government is considering an intervention to assist the producers of Calcar, a dairy cooperative that closed its doors on April 2nd. The cooperative owes its producers a total of $2.5 million, and discussions are underway to cover at least 40% of this debt.
Efforts include leveraging $1 million from the existing $4 million in the Fondo de Financiamiento de la Actividad Lechera (FFAL), rather than fully repaying the loan from the Fondo de Garantía Lechero (Fogale). Additional support measures may involve a credit line from Banco República to help producers maintain their financial standing.
The collapse of Calcar highlights significant undelivered milk payments from late 2024 to early 2025, owing percentages ranging from 30% to 100% for months leading up to March. The cooperative's fiscal woes are compounded by a negotiated yet unfulfilled debt settlement of $12 million with banks, which will revert to an initial amount of $26 million pending a potential assets auction. The land on which Calcar operated is tied to the National Colonization Institute, adding complexity to the liquidation process.
Efforts include leveraging $1 million from the existing $4 million in the Fondo de Financiamiento de la Actividad Lechera (FFAL), rather than fully repaying the loan from the Fondo de Garantía Lechero (Fogale). Additional support measures may involve a credit line from Banco República to help producers maintain their financial standing.
The collapse of Calcar highlights significant undelivered milk payments from late 2024 to early 2025, owing percentages ranging from 30% to 100% for months leading up to March. The cooperative's fiscal woes are compounded by a negotiated yet unfulfilled debt settlement of $12 million with banks, which will revert to an initial amount of $26 million pending a potential assets auction. The land on which Calcar operated is tied to the National Colonization Institute, adding complexity to the liquidation process.
