The understanding is that some change needed to happen to change the environment and the market’s perception of Piá, after years of an administration that did not work and saw the cooperative sink into debt, losses and lack of cash to pay the essential: its raw material suppliers.
“We are afraid of what could happen, but we are more optimistic about the previous situation. The board did not open up to the producers, it did not share the difficulties. I imagine they tried to solve it on their own, but it didn’t work”, says a producer from Linha Brasil, in the host municipality.
Without wanting to be identified, he says that he had never been without receiving payment for the milk delivered. When rumors that the situation had become even more complicated, he started calling the cooperative daily to find out if there would be money. After all, just referring to the milk delivered in April, the bill already reaches R$ 70 thousand. For now, he prefers to partner with Piá, to whom he delivered 1,100 liters of milk today. “My account with them is already at R$ 170,000. For now I have a reservation and I can face this month. But for the future, no. I need to feed the animals to keep producing”.
The family lives from the dairy activity. There are 40 wombs in production, in a herd of 80 cows and calves. “There have to be major changes. It’s going to be a drastic turnaround. I have hope, but of course it worries me, because if I fail again, my cash flow will also end”, adds the producer.
After the collective departure, who is ahead of Piá is Elton Bischoff, who was part of the Board of Directors. He will remain in office until the Extraordinary General embly called for June 19, when a new board will be chosen by the ociates. According to the company’s press office, only the new president, after being elected, will speak to the press.
On Wednesday, Piá issued a statement to members and the market. Signed by the members of the Audit Committee at 3:29 pm, the text seeks to explain the situation and promises measures to professionalize and improve management. It justifies that the context of crisis and instability of the national economy, and of the dairy market in particular, led to the impossibility of the cooperative to honor its commitments. “… with the recurring losses of the last few years, the operation has reached its limit and is completely out of cash, however the debts are under special attention for a quick solution”.
It also informs that the Audit Committee, together with a technical team and a specialized consultancy already hired, will form a Crisis Management Committee for the cooperative’s activities, which is already working. And that, to face the challenges, the management of the cooperative decided to propose “the biggest restructuring of its 57 years of history, since continuing in the current way is unfeasible”.
Hypotheses will be analyzed, such as attracting new investors or financing and selling ets that are not being used, as well as non-priority operations, such as retail, supermarkets and agriculture. The idea is to keep the focus on the dairy product line and with higher added value, in addition to reducing costs.