Feb 25 • 11:42 UTC 🇦🇷 Argentina Clarin (ES)

Uncertainty about the future of one of the country's leading dairy companies: it accumulates rejected checks for $13.6 billion and its 3 plants are paralyzed

Lácteos Verónica, a major dairy company in Argentina, faces critical challenges as its operations have come to a halt, resulting in substantial debt and unpaid salaries for employees.

Lácteos Verónica, a significant player in Argentina's dairy sector, is currently facing severe financial challenges that have led to the paralysis of its three dairy processing plants located in Santa Fe. The company, owned by the Espiñeira family, has been unable to operate since mid-January due to expiring labor contracts, resulting in the cessation of milk production and a complete lack of incoming revenue. This situation has left approximately 700 employees without salaries and has led to a growing financial crisis within the company.

The financial troubles of Lácteos Verónica are underscored by the alarming number of rejected checks it has accumulated, totaling approximately $13.6 billion Argentine pesos. According to the Central Bank of Argentina (BCRA), the company has issued nearly 3,900 bounced checks, indicating a dire cash flow problem. Furthermore, the dairy company also owes an estimated $60 million to local dairy farmers from whom it sources milk, compounding its already significant financial burden. This situation raises serious concerns for both its employees and suppliers who heavily rely on the company's operation for their livelihoods.

The implications of this crisis extend beyond Lácteos Verónica itself; it could disrupt local agricultural economies, especially considering the company's contribution to the dairy industry in Argentina. The halted operations may also lead to a broader impact on the supply chain, affecting milk production in the region. As stakeholders await a resolution to this mounting crisis, the urgency for a strategic intervention becomes more critical to stabilize the company and support the agricultural sector that depends on its operations.

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