Closure of Uruguay's Oldest Dairy Cooperative Highlights Industry Challenges

Coleme, the oldest dairy cooperative in Uruguay, has officially closed its doors after facing persistent economic challenges. The cooperative, which had been in operation for more than 90 years in the Cerro Largo region, saw a significant reduction in the number of its milk suppliers over recent years. At its peak, Coleme counted over 70 producers among its suppliers, but this number dwindled to just 12 at the time of closure.

The decline in producer numbers was accompanied by a decrease in the volume of milk processed, ultimately affecting the cooperative's financial viability. Boris Revello, a key figure in the cooperative, publicly highlighted the deficit issues facing Coleme as early as 2024, emphasizing the need for substantial restructuring to prevent closure. "Otherwise, there is no other option but to close," he had stated.

Efforts to save the cooperative included negotiations with an Argentine investor who showed interest in acquiring the business. However, these discussions did not result in a successful transaction, and the cooperative could not overcome its financial challenges.

The closure of Coleme signifies a broader trend affecting small cooperatives and regional plants in Uruguay, which are struggling to maintain scale, secure raw materials, and compete in an increasingly consolidated market. The end of Coleme’s operations marks the loss of a historic institution in Uruguay's dairy industry.

The cooperative's dissolution is a blow to the regional economy and reflects the growing difficulties faced by small-scale dairy producers in the country. As the market becomes more concentrated, these smaller entities find it harder to survive without significant changes or external support.