With debts estimated at around R$ 780 million, Cooperativa Languiru, from Teutônia, will have its future outlined this Thursday (30th), when an assembly of associates will decide whether or not to give the green light to the establishment of a partnership with Chinese group ITG and TJJT. In meetings this Monday and Tuesday, the organization, which since last year has been conducting a restructuring plan, detailed its proposal to integrated producers of poultry, pork, grains, beef cattle and milk. For the president of Languiru, Dirceu Bayer, the meetings were a positive thermometer of support for the alternative presented by the cooperative’s directors.
This Thursday’s event is decisive because, after the announcement of the signing of the protocol of intentions with Chinese companies, on March 22, the 2nd Judicial Court of the Comarca of Teutônia ordered the seizure of the cooperative’s assets, preventing the organization from selling assets without the approval of the members at the meeting. “(We heard) very favorable testimonials. There is a consensus, we have not seen anyone speak against (the partnership). Members are smart and will choose what is best for them and for the cooperative”, assesses Bayer.
According to the leader, the association with the Chinese group seeks to curb the losses recorded by Languiru in the pig and poultry segments in the last two years, due to the increase in production costs and high interest rates. “Our revenue (in 2022) is almost BRL 3 billion. The debt is not a problem, it is within the recommended standards. We are doing this as a preventative measure. In order not to depend so much on these sectors, we reduced the production of poultry and pork a little. Now, we are (seeking) a complementary solution to our restructuring program”, he points out.
If the union with the Chinese companies is approved, a due diligence process (audit) will be initiated in the cooperative in Rio Grande do Sul. “They (the investors) will carry out an investigation, get to know the plants well, survey the situation and only then will they choose to partner or not”, explains Bayer. The plan foresees the creation of a joint venture, but the participation of the cooperative from Rio Grande do Sul in this new company has not yet been defined. “Languiru will continue in those sectors that give results. We are going to be a smaller cooperative, with maybe around R$ 1 billion in revenue, but totally viable. And, with this resource that will come in, we will be able to settle our most expensive debts and be left with only the residual debt”, says the president of Languiru.
The rapprochement with the Chinese, according to Bayer, began during Expodireto Cotrijal, held earlier this month in Não-Me-Toque. “Contacts were getting stronger, they stayed here for a week, extended for another seven days, because our plants are impressive due to their technological level, and they were very pleased”, says the executive. Last year, the organization, which has around 6,000 associates, invested RS 125 million in the modernization of its industrial park.
The president of the Organization of Cooperatives of the State of Rio Grande do Sul (Ocergs System), Darci Hartmann, says that the financial impasse faced by Languiru is a “one-off” problem and dismisses the risk of similar crises impacting other sector organizations in the State. For the leader, the cooperative’s difficulties are due to the skyrocketing costs of inputs used in the production of poultry and pork, such as animal feed. Ocergs, he says, is monitoring the measures adopted by Languiru and providing the necessary support to ensure the protection of the group’s associates and employees.
According to Hartmann, the cooperative grew by 11% in revenues in 2022. The so-called leftovers – a positive financial result that is distributed among cooperative members or reinvested in the organizations themselves – increased by 17% in the period. “I understand that Languiru, alone, cannot overcome these difficulties. It has to look for partners to contribute resources and give up some assets. Ocergs’ main concern is that the producer is protected, he cannot be asked to pay something (for) that he is not responsible for, ”she emphasizes.
Hartmann observes that the occurrence of two successive droughts in Rio Grande do Sul reduced the latest corn harvests – the main ingredient used in the formulation of animal feed –, increasing the dependence of cooperatives on supplies from other states and, consequently, freight costs. “We produce half the corn we consume. So, you have to bring the maize from Mato Grosso. The biggest market (consumer) is São Paulo, Rio de Janeiro, we compete with the industries of Paraná, which have a much lower transport cost”, he highlights.
Punctual problem”
The president of the Organization of Cooperatives of the State of Rio Grande do Sul (Ocergs System), Darci Hartmann, says that the financial impasse faced by Languiru is a “one-off” problem and dismisses the risk of similar crises impacting other sector organizations in the State. For the leader, the cooperative’s difficulties are due to the skyrocketing costs of inputs used in the production of poultry and pork, such as animal feed. Ocergs, he says, is monitoring the measures adopted by Languiru and providing the necessary support to ensure the protection of the group’s associates and employees.
According to Hartmann, the cooperative grew by 11% in revenues in 2022. The so-called leftovers – a positive financial result that is distributed among cooperative members or reinvested in the organizations themselves – increased by 17% in the period. “I understand that Languiru, alone, cannot overcome these difficulties. It has to look for partners to contribute resources and give up some assets. Ocergs’ main concern is that the producer is protected, he cannot be asked to pay something (for) that he is not responsible for, ”she emphasizes.
Hartmann observes that the occurrence of two successive droughts in Rio Grande do Sul reduced the latest corn harvests – the main ingredient used in the formulation of animal feed –, increasing the dependence of cooperatives on supplies from other states and, consequently, freight costs. “We produce half the corn we consume. So, you have to bring the maize from Mato Grosso. The biggest market (consumer) is São Paulo, Rio de Janeiro, we compete with the industries of Paraná, which have a much lower transport cost”, he highlights.
