The Sociedad Cooperativa del Campo La Candelaria, an agricultural organisation within the social economy sector with a long history in the town of La Laguna and on the island of Tenerife, is facing a pressing situation similar to what happened previously with the Cooperativa Cosecheros de Tejina. The cooperative has been unable to address its debts owed to a local financial institution and numerous other creditors, including the farmers themselves who supply milk for processing at the Benijos cheese factory in La Orotava, an industrial facility owned by the Cabildo de Tenerife. This facility is at risk of closure within two years due to the need to increase fees for facility use to comply with EU regulations. This scenario echoes the situation faced by Bodegas Insulares de Tenerife, SA.
The primary source of income for the cooperative is the industrial processing of dairy products, which is supported by the public trading company Gestión del Medio Rural (GMR) attached to the Department of Agriculture of the Government of the Canary Islands.
Due to the economic and financial challenges that the cooperative has been facing since the early 2010s, a general assembly was held last Friday revealing continued losses (over 100,000 euros). The assembly, with fewer than ten members in attendance, was led by President Candelaria Rodríguez and Secretary Santiago Cacho. The meeting approved the accounts for 2023, as confirmed by some cooperative members present.
It was discussed at the meeting that the cooperative’s financial situation could potentially be improved through the sale of its main asset: the central facilities in the San Benito neighbourhood of La Laguna. The land on which these facilities are situated is developable and valuable. An appraisal valued this asset at 3.6 million Euros, however, private developers have only offered up to two million Euros for the land, which has not resulted in a transaction. The Governing Council emphasised that selling these facilities is crucial for the cooperative’s future, potentially leading to a relocation of activities to the El Ortigal area near Los Rodeos airport, where the cooperative has facilities for cheese maturation.
The La Candelaria Cooperative has also made an offer to purchase the property from the La Laguna City Council, submitting a formal request that included the aforementioned property appraisal.
While the outcome of this request is pending, the Governing Council is pursuing options in both the public and private sectors. The Ministry of Agriculture has been approached for potential support, which could involve collaborations with several public administrations to assist the La Candelaria Cooperative. However, the only current relationship mentioned with the cooperative is commercial agreements with the public marketing company GMR, ensuring payments are received within 15-30 days.
In the present moment, the cooperative mentioned earlier is facing a substantial debt with a bank, amounting to approximately two million Euros (a loan with an extended grace period that remains unpaid and is now due, causing a significant stir among cooperative members when they were informed through a letter about their responsibility in the debt. Additionally, other creditors who are also members of the cooperative have intensified pressure to settle outstanding payments, many of which are linked to delays in the payment for milk supplied to the Benijos cheese factory.
This week, there was a lot of speculation in La Laguna about the likelihood of the Governing Council announcing the intention to file for bankruptcy in the commercial court during Friday’s assembly. However, according to sources present at the meeting, where member attendance was notably low, no mention was made of this potential course of action.
A narrative that has become bleak in just a few years
Despite receiving significant financial aid from the Island Council, La Laguna Town Hall, and the Government of the Canary Islands, often with the backing of the three predominant political parties in the region (CC, PSOE, and PP), the La Candelaria Countryside Cooperative is currently mired in a profound economic and financial crisis. This crisis traces back to the failed industrial project of Granja Teisol, a facility now owned by the Cabildo of Tenerife and inactive in the municipality of Santa Úrsula. This plight is also mirrored in the state of the Biogranja livestock farm (located nearby and in ruins, also under Cabildo ownership), the sale of the El Ortigal feed factory due to debts and losses (now owned by Cereales Archipiélago), and the abandonment of the cattle ranch in Finca de la Data, La Esperanza, another property entrusted to the cooperative by the Council.
Presently, the La Candelaria Cooperative operates the Benijos (La Orotava) cheese factory, a public concession owned by the Cabildo, and is actively seeking to sell its main facilities and headquarters located in San Benito, on Marqués de Celada street, to alleviate its severe financial crisis.
Thus far, there hasn’t been any interested buyer, either public or private, for the said property and land. This asset represents the only significant holding of the company, alongside a cheese maturation warehouse close to the defunct feed factory.
Farmers who supply milk to the cooperative for the production of goat’s milk, cow’s milk, or mixed cheeses (commercialized through the Ministry of Agriculture GMR public company) continue to face significant challenges in receiving payments for their produce. This has placed them in dire situations, with delays of over three months in payments and compensation offered by the cooperative in kind due to their inability to fulfil these financial obligations.
