Economic crisis affects SAIS Cahuide
SAIS Cahuide, the largest farming company in Peru, suffered the effects of the 1976 economic crisis, which caused a drastic reduction in income due to the drop in sales of livestock production and sheep wool, eventually leading to its liquidation in 1988.
The Sociedad Agraria de Interés Social (SAIS) Cahuide, the largest peasant enterprise in the department of Junín and the entire country created by the agrarian reform, could not avoid the effects of the 1976 economic crisis. This crisis, together with the contradictions inherent to its structure and organization, seriously affected the company from its inception. The drastic drop in sales of livestock production and sheep wool was decisive for the dramatic reduction of its income since 1979 and finally for its own liquidation in 1988. Revenues in 1985 were down to 56% of what they had been in 1971 and 48% of 1979, which had been the last year with the highest profits in its history.