Argentinian Dairy Giant on the Brink of Collapse
Sourse: dairynews.today
A Santa Fe dairy company faces a financial crisis with over 1,600 bounced checks and a massive debt, threatening 700 jobs.
A leading dairy company in Santa Fe, Argentina, is embroiled in a severe financial crisis, having issued at least 1,676 bad checks in 2025 alone. The company is grappling with a debt exceeding 5.420 billion pesos, ultimately halting milk processing and jeopardizing approximately 700 jobs.
Of the 1,829 checks issued this year, only 153, a little over 9%, have been honored, underscoring a drastic decline in their payment capacity. Amid these challenges, the Santa Fe Chamber of Deputies' Labor Affairs Committee is exploring options with employees to prevent the company from shutting down or being dismantled. While provincial authorities engage in talks with the union and the firm, no definitive solutions have emerged.
The crisis, which highlights years of internal conflicts and questioned management decisions, has also stalled salaries since May, with the ATILRA union considering strikes and raising concerns over potential tax irregularities. The company's collapse could have wider repercussions beyond its workforce, affecting regional suppliers, increasing uncertainty, and spotlighting the dairy system's vulnerability to prolonged operational and financial troubles. Immediate dialogue and actions are crucial to avert irreversible consequences.
Of the 1,829 checks issued this year, only 153, a little over 9%, have been honored, underscoring a drastic decline in their payment capacity. Amid these challenges, the Santa Fe Chamber of Deputies' Labor Affairs Committee is exploring options with employees to prevent the company from shutting down or being dismantled. While provincial authorities engage in talks with the union and the firm, no definitive solutions have emerged.
The crisis, which highlights years of internal conflicts and questioned management decisions, has also stalled salaries since May, with the ATILRA union considering strikes and raising concerns over potential tax irregularities. The company's collapse could have wider repercussions beyond its workforce, affecting regional suppliers, increasing uncertainty, and spotlighting the dairy system's vulnerability to prolonged operational and financial troubles. Immediate dialogue and actions are crucial to avert irreversible consequences.
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