La Cabaña Sugar Mill Ordered Liquidated Amid Worker Uncertainty

More than 3,000 workers face uncertainty after Colombia's Superintendency of Companies ordered the judicial liquidation of the La Cabaña sugar mill in Guachené, northern Cauca. The decision came after the company failed to reach a reorganization agreement, leading to the closure of its recovery process.

The ruling, issued on June 17, 2026, terminates the reorganization process that began in June 2024. The mill directly employs over 3,000 people and indirectly supports an additional 2,000 jobs. The news has caused significant concern in the municipalities of Guachené, Puerto Tejada, Caloto, Villa Rica, and Santander de Quilichao.

The situation has been critical since May 2024, when workers first raised alarms about the company's debts, exceeding 1.26 trillion pesos. The company requested a change in procedure on June 12, citing a complex mix of factors compromising its financial and operational viability. These include macroeconomic conditions, climate challenges, financial crises, and particularly, the severe crisis in the sugar sector.

La Cabaña also cited difficulties in accessing fresh working capital and problems related to public order in Cauca. According to the Association of Sugar Cane Growers (Asocaña), insecurity and attacks on workers have been rampant. Between 2024 and 2025, over 1,400 security incidents targeting agro-industrial workers occurred in the Valle and Cauca corridors. In 2024, there were 365 incidents, rising to 1,041 in 2025, meaning workers faced an average of three attacks daily. A single attack this year resulted in 7 billion pesos in losses, primarily due to damaged machinery, with workers also being robbed of their belongings.