Uruguay's Dairy Dilemma: Calcar's Closure

The Cooperative Dairy of Carmelo, known as Calcar, has declared bankruptcy, marking a significant downturn in Uruguay's dairy industry. The beleaguered company owes over $3.5 million to about 70 local producers and has left more than 100 workers unemployed. The crisis mirrors larger troubles in Uruguay's agricultural sector, similar to the challenges faced by the meat industry.

According to Minister of Labour and Social Security, Juan Castillo, the government is closely monitoring the situation, exploring alternative mechanisms to avert further economic hardship. Strategic missteps, along with ongoing financial struggles, have long plagued Calcar, culminating in its inability to meet milk production demands and obligations.

Local farmer Sebastián Perrachón highlighted the longstanding issues within Calcar, pointing to its failed strategies and financial mismanagement. The company had been attempting to restructure and focus on local markets, constrained by declining milk production. Meanwhile, the closure has significant repercussions for the local economy, especially in Tarariras, where Calcar was a vital employer and its products a regional staple.

Marco Mariotta, a dairy producer in Tarariras, expressed concern over the closure’s impact on the community, acknowledging Calcar's past prestige and economic contributions to the area.