Calcar's Financial Struggles: $2.4 Million Debt to Dairy Producers

Calcar, a prominent dairy cooperative in Uruguay, is facing a financial crisis, with an outstanding debt of $2.4 million owed to its milk producers. As reported by the president of the National Milk Institute (INALE), Ricardo de Izaguirre, the cooperative owes for three months of milk supplies, with some workers still awaiting March salaries, bonuses, and vacation pay. These financial issues are compounded by missed contributions to institutions such as the Institute of Colonization and Republica Microfinanzas.

The cooperative's closure marks a significant blow to local dairy producers who relied on Calcar for processing their milk. "A factory without milk cannot function," stated de Izaguirre, highlighting the loss of trust among producers who ceased deliveries. Consequently, the dairy plant workers are transitioning to unemployment insurance as no feasible solution for maintaining operations has emerged.

The matter featured prominently during the inaugural board meeting of INALE, featuring delegates from the Executive Power. Discussions are ongoing among the Ministry of Labor, Ministry of Industry, and Ministry of Livestock to explore potential resolutions. However, the prospects for keeping the plant operational remain bleak without an adequate milk supply.

The situation underscores the larger issue affecting Uruguay's dairy industry, with overall milk production in decline. This production drop has significantly impacted Calcar's ability to operate and pay its dues, placing the cooperative in an untenable position. INALE's de Izaguirre remarked on the ineffectiveness of the Dairy Industry Conversion Fund, suggesting a need for strategic reform to prevent future industry disruptions.