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Valdivia, capital of the Chilean province where protests at a Fonterra factory broke out this week. Photo / 123RF
Protesters in Chile picketed a Fonterra factory demanding what they called fair prices for milk.
“Fonterra’s days in Chile are numbered, they are going to lose their millions of dollars in investment,” a source told
But a Chilean news website on Friday morning (NZT) said access to the Prolesur dairy plant was renewed after a three-day occupation.
And Fonterra today confirmed the protest was over.
“As a result of the protest, milk tankers were not able to enter the site for two days, and so were redirected to another factory for processing,” Fonterra Africa, Middle East, Europe, North Asia and Americas chief executive Kelvin Wickham said.
“The protest, which was blocking access to the Prolesur plant in Los Lagos, has now stopped.”
Multiple local media reports indicated grievances over milk prices fuelled the protest.
Local union leader Erwin Huentrepan told the RioenLinea website that company leaders had agreed to discuss contentious issues with workers.
New Zealand’s foreign ministry was aware of the protest.
“Mfat is aware of some protest action at the Prolesur factory in Los Lagos but understands operations are continuing as normal,” a ministry spokeswoman told the Herald.
“There is no indication that people are in danger or that foreign nationals, including New Zealanders, are at risk.”
Chilean newspaper Diario de Valdivia said a local union wanted what it called fair prices to cover workers’ expenses.
The union said companies such as Fonterra and Nestlé had great purchasing power.
Fonterra three years ago said it would spend $29.3 million on a stake in Prolesur, lifting its stake in the Chilean milk processor to 99.9 per cent.
Prolesur sells most of its production to Soprole – and Fonterra has been trying to sell Soprole since at least March this year.
Fonterra’s business strategy increasingly focused on the provenance of New Zealand milk – in other words, moving away from offshore milk pools and manufacturing.
Further news on the Soprole sale’s progress is expected during the announcement of annual results next week.
Multiple protests over various social and economic issues have flared up in Chile since 2019.
Hundreds of high school students demonstrated in the Chilean capital Santiago for at least four days last week.
According to Reuters, the students demanded reforms to the education system days after voters rejected a proposed new progressive constitution.
Mfat currently advised Kiwi travellers in the South American country to be cautious due to crime and the potential for violent civil unrest.
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