SanCor's Hidden Bankruptcy: Dairy Producer Speaks Out

Background on SanCor's Financial Crisis

For nearly a decade, SanCor, a prominent dairy cooperative in Argentina, has been grappling with a severe financial crisis. The situation has profoundly impacted its associated milk producers, such as Iván Castro, who has voiced concerns over the cooperative's financial management.

Personal Connection and Insights

Castro, whose family has been involved in dairy farming for over 30 years, inherited a strong business relationship with SanCor. His late father, Carlos Castro, a board member between 2016 and 2019, was a fervent supporter of the cooperative, deeply invested in its operations. Despite foreseeing financial troubles as early as 2017, the Castro family continued supplying SanCor due to their familial ties and a sense of loyalty.

Current Financial Strains

The dairy crisis has escalated, leaving SanCor with substantial debts, including significant arrears to milk producers. As of the last fiscal reporting period ending September 30, SanCor recorded assets valued at $80 billion against liabilities totaling $251 billion. This includes over $10 billion owed to producers like Castro and massive debts to banks and staff.

Allegations of Mismanagement

Iván Castro accuses SanCor's management of failing to act transparently or responsibly, describing the current strategy as "improvised" and leading the cooperative towards inevitable bankruptcy. He insists the company's filing for preventive insolvency is merely a tactic to buy time to attract investors or liquidate assets, doubting that any buyer would assume its overwhelming debts.

Impacts and Future Concerns

Castro remains pessimistic about SanCor's future without intervention. He criticizes the current leadership for misleading stakeholders and is urging for transparency and urgent reforms to prevent further damage to the stakeholders and employees involved. Without a clear plan or new investment, the outlook for SanCor remains bleak.