Members of the Argentinian dairy cooperative SanCor will meet on Thursday to decide on an offer for a majority of the business from local agri-food company Adecoagro.

Sources from Adecoagro confirmed to just-food today SanCor plans the meeting, although the co-op declined to comment.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

SanCor is trying to emerge from financial problems and for the last year has been in talks with New Zealand giant Fonterra, as well as other large dairy firms from outside of Argentina, in order to restructure the firm.

Adecoagro is the largest raw milk producer in Argentina, manufacturing over 270,000 litres per day, and also participates in rice and pasta with its brand Molinos Ala. 

Last month, Adecoagro submitted an investment proposal to partner with SanCor. Under the plan, Adecoagro would bring to the table its raw milk production and strong balance sheet, while SanCor would contribute selected operational facilities and brands.

See Also:

“We would be making an investment, with a cash flow injection on order to face Sancor’s debt, resulting in an association in which Adecoagro would have a majority participation,” sources from Adecoagro told just-food.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In its March statement, Adecoagro said Argentina had seen “stable” milk production over the last two decades, “compared to the sustained growth experienced in the region”. 

It added: “The country has a clear opportunity to add value to its raw milk production”. The firm also mentioned the possibility of increasing infant formula exports.

In the year to 30 June 2017, SanCor ran up a net loss of around ARS2.7bn. Since then, the company has sought to restructure its business, including selling its stake in ingredients venture AFISA to Arla Foods.