SanCor
Encyclopedia
SanCor is one of the leading dairy
producers in Argentina
(along with competitor La Serenísima
). It holds one fifth of the total production in the country, and 90% of the Argentine exports of dairy products. It is a large cooperative
made up many smaller ones, based on the Argentine "central milk basin" around the border between the provinces of Santa Fe
and Córdoba
.
SanCor produces milk
, powdered milk
, cream
, cheese
s, butter
, yoghurt
, dulce de leche
(milk caramel) and dessert
s, which are sold under various brand names: SanCor, San Regim, Las Tres Niñas, Tholem, Santa Brígida, Angelita, Granja Blanca and Chelita.
The cooperative was founded on 17 September 1938 as an association of many cooperative producers in the central area of the country, and grew as its success attracted more members. an Its first industrial plant (a butter factory) was opened in 1940 in Sunchales, Santa Fe
, where SanCor's administrative headquarters are located today. New plants, producing butter, cheese and dulce de leche, followed during the 1940s. In 1953, SanCor opened a branch office in New York City
, United States
, in order to boost its international trade operations; and in 1956, new branch offices were opened in Buenos Aires
and other Argentine cities. In 1986 a daughter company, SanCor do Brasil Produtos Alimentícios Limitada, was founded in São Paulo
, Brazil
.
In 1994 SanCor became the first Argentine cooperative to issue its own negotiable instrument
s.
in 2001. Near the end of 2006, the company was faced with the impossibility of paying up about $167 million. A letter of intent was signed by the firm Adecoagro, partly owned by American financist George Soros
. Adecoagro had agreed to provide SanCor with $50 million as work capital plus $70 million to refinance its debt, receiving in exchange the control of 62.5% of the company.
Upon concerns from the national government and others, SanCor initially denied it had received any other offers from national investors, but the Petersen Group, led by Argentine entrepreneurs Enrique Eskenazi, Hugo Sigman
and Eduardo Eurnekian
, claimed it had presented a better offer which had been rejected.
Soon afterwards, Venezuelan president Hugo Chávez
visited Argentina and proposed a salvage loan to SanCor, partly in order to pay its debt and partly to finance needed investment, in exchange for milk powder and technical advice. The formal agreement was signed on 11 December 2006 between SanCor and the Banco de Desarrollo Económico y Social de Venezuela, an autonomous financial agent of the Venezuelan government. SanCor will not have to cease being a cooperative, as it would have happened with the alternative offers. The total loan will amount to $135 million, of which $80 million will be repaid with exports of powdered milk, while the other $55 million will be employed as work capital.
Dairy
A dairy is a business enterprise established for the harvesting of animal milk—mostly from cows or goats, but also from buffalo, sheep, horses or camels —for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multi-purpose farm that is concerned...
producers in Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
(along with competitor La Serenísima
La Serenísima
-Development:La Serenísima was established in 1929 by Antonino Mastellone, a cheese-maker from Sardinia who arrived in Argentina in 1925. Mastellone named his venture in honor of La Serenissima, a World War I-era Italian Air Force battalion which on orders to bombard Vienna, released a load of...
). It holds one fifth of the total production in the country, and 90% of the Argentine exports of dairy products. It is a large cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
made up many smaller ones, based on the Argentine "central milk basin" around the border between the provinces of Santa Fe
Santa Fe Province
The Invincible Province of Santa Fe, in Spanish Provincia Invencible de Santa Fe , is a province of Argentina, located in the center-east of the country. Neighboring provinces are from the north clockwise Chaco , Corrientes, Entre Ríos, Buenos Aires, Córdoba, and Santiago del Estero...
and Córdoba
Córdoba Province (Argentina)
Córdoba is a province of Argentina, located in the center of the country. Neighboring provinces are : Santiago del Estero, Santa Fe, Buenos Aires, La Pampa, San Luis, La Rioja and Catamarca...
.
SanCor produces milk
Milk
Milk is a white liquid produced by the mammary glands of mammals. It is the primary source of nutrition for young mammals before they are able to digest other types of food. Early-lactation milk contains colostrum, which carries the mother's antibodies to the baby and can reduce the risk of many...
, powdered milk
Powdered milk
Powdered milk is a manufactured dairy product made by evaporating milk to dryness. One purpose of drying milk is to preserve it; milk powder has a far longer shelf life than liquid milk and does not need to be refrigerated, due to its low moisture content. Another purpose is to reduce its bulk for...
, cream
Cream
Cream is a dairy product that is composed of the higher-butterfat layer skimmed from the top of milk before homogenization. In un-homogenized milk, over time, the lighter fat rises to the top. In the industrial production of cream this process is accelerated by using centrifuges called "separators"...
, cheese
Cheese
Cheese is a generic term for a diverse group of milk-based food products. Cheese is produced throughout the world in wide-ranging flavors, textures, and forms....
s, butter
Butter
Butter is a dairy product made by churning fresh or fermented cream or milk. It is generally used as a spread and a condiment, as well as in cooking applications, such as baking, sauce making, and pan frying...
, yoghurt
Yoghurt
Yoghurt, yogurt or yogourt is a dairy product produced by bacterial fermentation of milk. The bacteria used to make yoghurt are known as "yoghurt cultures"...
, dulce de leche
Dulce de leche
Dulce de leche is a thick,creamy, caramel-like milk-based sauce or spread.Literally translated, dulce de leche means "sweet from milk". It is prepared by slowly heating sweetened milk to create a product that derives its taste from caramelised sugar. It is a popular sweet in Latin America, where...
(milk caramel) and dessert
Dessert
In cultures around the world, dessert is a course that typically comes at the end of a meal, usually consisting of sweet food. The word comes from the French language as dessert and this from Old French desservir, "to clear the table" and "to serve." Common Western desserts include cakes, biscuits,...
s, which are sold under various brand names: SanCor, San Regim, Las Tres Niñas, Tholem, Santa Brígida, Angelita, Granja Blanca and Chelita.
The cooperative was founded on 17 September 1938 as an association of many cooperative producers in the central area of the country, and grew as its success attracted more members. an Its first industrial plant (a butter factory) was opened in 1940 in Sunchales, Santa Fe
Sunchales, Santa Fe
Sunchales is a city in the province of Santa Fe, Argentina. It has 18,711 inhabitants per the . It lies in the center-west of the province, 135 km from the provincial capital Santa Fe, on National Route 34....
, where SanCor's administrative headquarters are located today. New plants, producing butter, cheese and dulce de leche, followed during the 1940s. In 1953, SanCor opened a branch office in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, in order to boost its international trade operations; and in 1956, new branch offices were opened in Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
and other Argentine cities. In 1986 a daughter company, SanCor do Brasil Produtos Alimentícios Limitada, was founded in São Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
.
In 1994 SanCor became the first Argentine cooperative to issue its own negotiable instrument
Negotiable instrument
A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time. According to the Section 13 of the Negotiable Instruments Act, 1881 in India, a negotiable instrument means a promissory note, bill of exchange or cheque payable either...
s.
2006 financial rescue
During the 1990s, SanCor incurred a large debt to finance capital investment. In 1998 the crisis of the dairy market started causing difficulties for the cooperative, which became overwhelming after the collapse of the Argentine economyArgentine economic crisis (1999-2002)
The Argentine economic crisis was a financial situation, tied to poilitical unrest, that affected Argentina's economy during the late 1990s and early 2000s...
in 2001. Near the end of 2006, the company was faced with the impossibility of paying up about $167 million. A letter of intent was signed by the firm Adecoagro, partly owned by American financist George Soros
George Soros
George Soros is a Hungarian-American business magnate, investor, philosopher, and philanthropist. He is the chairman of Soros Fund Management. Soros supports progressive-liberal causes...
. Adecoagro had agreed to provide SanCor with $50 million as work capital plus $70 million to refinance its debt, receiving in exchange the control of 62.5% of the company.
Upon concerns from the national government and others, SanCor initially denied it had received any other offers from national investors, but the Petersen Group, led by Argentine entrepreneurs Enrique Eskenazi, Hugo Sigman
Hugo Sigman
Hugo A. Sigman is an Argentine businessman who was born in 1944. Although his main business activity has traditionally been related to the pharmaceutical industry, over a decade ago he diversified his interests and today has a multi-faceted business profile: he encourages research on new...
and Eduardo Eurnekian
Eduardo Eurnekian
Eduardo Eurnekian is an Argentinian businessman.-Rise to prominence:Eduardo Eurnekian was born to immigrants from Armenia, in 1932...
, claimed it had presented a better offer which had been rejected.
Soon afterwards, Venezuelan president Hugo Chávez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
visited Argentina and proposed a salvage loan to SanCor, partly in order to pay its debt and partly to finance needed investment, in exchange for milk powder and technical advice. The formal agreement was signed on 11 December 2006 between SanCor and the Banco de Desarrollo Económico y Social de Venezuela, an autonomous financial agent of the Venezuelan government. SanCor will not have to cease being a cooperative, as it would have happened with the alternative offers. The total loan will amount to $135 million, of which $80 million will be repaid with exports of powdered milk, while the other $55 million will be employed as work capital.