Judge in charge of the Mercedes Civil and Commercial Court Resolved bankruptcy of Lacteos Konosul SAproducer of the La Suipatiens brand, one of the main brands Dairy industry The company filed for bankruptcy in the northern zone of Buenos Aires after confirming the violation of the preventive agreement concluded with its creditors within the framework of the bankruptcy.
According to the judgment: The company has accumulated outstanding debts including USD 293,857 Post-bankruptcy debts plus overdue installments of approved contracts $8.458 billion in rejected checks and more than $1 billion in union ties Social work in this field such as ATILRA, OSPIL, AMPIL.
The judge thought that “The law is dull” Considering the situation of mere non-compliance; “We have no choice but to proceed with the procedures in accordance with the prescribed regulations and declare bankruptcy.”
In the resolution, he also emphasized that: The plant was paralyzed for 3 monthsit worsened the situation of workers and strengthened the situation of bankruptcy.
The ruling disqualified the company and its principal directors. Jorge Luis Borges Leon, He ordered the intervention of the Receiver’s Office, shutting down the facility, intercepting communications, and blocking all bank accounts and assets in the firm’s name.
The judge also directed the Comptroller’s Office to intervene with the Criminal Justice Department if any evidence of administrative fraud or potential crimes committed by partners is identified. The credit verification process was accepted until February 10, 2026.
Another bankruptcy in the dairy industry
in the case of Lacteos Konosul is not isolated.. This has affected Argentina’s dairy industry in recent months with a series of bankruptcies, business suspensions and temporary closures, characterized by high costs, low profitability and a sharp deterioration in domestic consumption.
The crisis worsened further after operations were permanently suspended. Refrigerated Food SA (ARSA), The company, which made desserts, yogurt and flan under the SanCor brand, was declared bankrupt at the end of October. In that case, more than 400 employees lost their jobs and the factory was abandoned.
Both cases highlight the sector’s structural weaknesses, which combine excessive debt, low international prices and delayed payments to producers. High energy costs and rising financial interest rates further complicate the equation for companies operating with minimal profit margins.
In the case of Lacteos Konosul, production has been suspended since mid-year, with unions warning of salary arrears and shortfalls in contributions. The company processes milk and its derivatives for its own and third-party brands and employed approximately 150 people, most of whom worked at the Suipacha factory.
Another example is what’s happening in Santa Fe. Santa Fe factory of Sudamericana de Lacteoshas stopped paying for milk it receives from a pool of 15 dairy farms in the state. colonyin the dairy heart of the state. Producers have claimed debts for August, September and October, the total of which has already exceeded the total amount $350 million.
Those who make up the group warn that while some more structured farms will be able to withstand income shortfalls, those already in debt or without capital will be “hard hit”. ”I have debt for three months: August, September, and October. “This creates a huge and scary financial hole for us.”was recognized as one of the dairy farmers.
in this case, The company stopped paying rent, banks and salaries.and factory workers are directly and indirectly on alert. Producers have warned that the factory continues to supply around 35,000 to 40,000 liters of milk per day. However, there is no indication as to when payments will normalize, which also complicates the possibility of redirecting that production to other factories in the region.
Mirror of declining productivity
The court’s decision marks the end of a phase that began with hopes of reconstruction but ultimately ended in liquidation. Essentially, the magistrate recalled: “Judges should not be fugitives from reality.” And it must take into account the “economic and social circumstances” surrounding each case. This bankruptcy reflects the unfavorable economic conditions that have left many small and medium-sized enterprises in this sector with no exit.
Indeed, the collapse of Lacteos Conosur deepens the crisis in a sector that once represented the productive roots of Buenos Aires’ interior. With factories closed and workers in a state of uncertainty, the judicial decision is yet another picture postcard of the downturn that Argentina’s dairy industry is experiencing. A growing number of companies in the industry are either surviving despite extreme hardship or directly ceasing production.
According to Observatory of the Argentine Dairy Chain (OCLA)the average price of milk to producers measured by the SIGLeA system in September 2025 was $474.60 per liter, equivalent to $6,506.73 per kilogram of useful solids. Adjusted for inflation, this was one of the lowest in five years, and the organization itself noted that August was the “worst month in seven years” for Argentina’s dairy industry.
Despite national production increasing by nearly 6% year-on-year, industrial and primary profit margins remain in negative territory, impacting both factories, cooperatives and producers.
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