Why Uruguay’s Oldest Dairy Cooperative Coleme Shut Down
At its peak, Coleme worked with more than 70 producers, but this figure had fallen to just 12 by the time operations ceased
MONTEVIDEO, June 11, 2026 — The Cooperativa Láctea de Melo [ Coleme ], the oldest dairy cooperative in Uruguay officially closed its doors days ago after struggling with persistent economic challenges.
According to the local media, the cooperative, which had operated for more than 90 years in the Cerro Largo region, experienced a sharp decline in the number of milk suppliers in recent years.
At its peak, Coleme worked with more than 70 producers, but this figure had fallen to just 12 by the time operations ceased.
The reduction in supplier numbers was accompanied by a drop in milk volumes, ultimately undermining the cooperative’s financial viability.
Boris Revello, a key figure within the cooperative, publicly raised concerns about Coleme’s financial deficit as early as 2024, stressing the need for significant restructuring to avoid closure.
“Otherwise, there is no other option but to close,” he said at the time.
Attempts to save the cooperative included negotiations with an Argentine investor who had expressed interest in acquiring the business. However, the talks failed to produce an agreement, and the cooperative was unable to overcome its financial difficulties.
Coleme’s closure reflects a broader trend affecting small cooperatives and regional processing plants across Uruguay, many of which are struggling to maintain economies of scale, secure sufficient raw materials and compete in an increasingly consolidated market.
The end of Coleme’s operations marks the loss of a historic institution in Uruguay’s dairy sector.
The cooperative’s dissolution is expected to impact the regional economy and highlights the mounting challenges facing small-scale dairy producers in the country. As the market becomes more concentrated, smaller operators are finding it increasingly difficult to survive without substantial reform or external support.
https://thecooperator.news/new-tool-to-boost-cooperative-innovation-in-uruguay-launched/
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