Santa Fe Exhausts Support for Dairy Giants SanCor and Verónica

The dairy industry in Santa Fe, Argentina, faces a dual challenge as the province leads the country's processing and export sectors but struggles with the operational stagnation of its major players, SanCor and Verónica. According to Carlos De Lorenzi, Director of Dairy, the provincial government has utilized all possible assistance, including raw material facilitation, guarantees with SGR, and bank financing.

SanCor is currently undergoing judicial bankruptcy proceedings, with De Lorenzi emphasizing the urgency of resolving the issue to resume plant operations, essential for managing the anticipated milk surplus. Similarly, Verónica is dealing with the repercussions of past management decisions, with the provincial government now relying on private sector initiatives to reactivate production lines.

Argentina is on the brink of surpassing a production milestone of 12 billion liters of milk, a target unmet for 25 years. However, this potential record faces setbacks from reduced domestic dairy consumption and the seasonal spring surplus, which could lower producer prices without accelerated export activities.

Additionally, the forecasted 'El Niño' phenomenon poses a threat, potentially disrupting production due to excessive rainfall impacting livestock conditions. The Santa Fe government underscores the importance of external demand to stabilize the industry, with efforts from the Ministry of Productive Development to expand international markets to absorb excess production.