SanCor Halts Production and Seeks Private Investment Rescue
SanCor's Financial Crisis
SanCor, the renowned Argentine dairy cooperative, is facing a precarious financial situation with a global debt exceeding $400 million. This mounting debt has jeopardized production across its five plants, prompting concerns about its future. According to sources close to the company, the new board of directors has intensified efforts to attract private investors for a "rescue" before the second half of 2025.
Historically, SanCor processed over 3 million liters of milk daily. However, post-crisis restructuring saw it fall from 14 industrial plants to just six, with one permanently closed at the end of the year. In the previous year, despite numerous production halts, the cooperative managed to process about 500,000 liters daily.
Production at a Standstill
In early 2025, production came to a near halt, with the five plants operating at their bare minimum. "For the past seven years, employees have faced delayed wage payments. The plants are practically inactive," revealed a sector insider.
SanCor's Santa Fe plant in Gálvez, which processes cheeses, and its Córdoba plant in La Carlota, focused on hard and grated cheeses, are both running minimal operations. Similarly, Devoto and Balnearia plants, which produce cheeses, butter, and creams, are experiencing parallel issues. Meanwhile, at Sunchales, the emblematic plant for milk production, the atmosphere remains strained, having gone ten months without production last year.
Investing in the Future
The dairy's challenges with Devoto's plant closure due to economic woes was highlighted by union Atilra, who stated that reopening hinges on improved financial conditions.
SanCor currently operates six business units: creams, dulce de leche, milk, infant formulas, butter, and cheeses. The latter is the most significant, housing numerous products and brands.
A key objective for SanCor is to keep its plants operational to generate daily revenue. "Within the next four months, securing private investments is crucial for SanCor's survival," said an inside source. Negotiations have been ongoing for at least six months, gaining urgency now.
"We've seen interest from both national and international groups," said company representatives. They anticipate new stakeholders in the coming semester.
Oscar Juan Sapino, who assumed the presidency last November, has a clear target: securing investors by mid-year. After a failed trust agreement a year ago, SanCor's leadership began exploring solutions to pull the cooperative out of its crisis.
Prospective options include setting up independent corporations for each plant, allocating product lines to different partners, or rebuilding a trust from scratch.
