A group of protesting Chilean dairy workers have reportedly taken control of Fonterra’s Prolesur plant in Los Lagos, in southern Chile, accusing it of exploitation.
A source with knowledge of the situation confirmed local press reports that an initial protest has escalated and the workers, together with representatives of the Mapuche indigenous community, have taken the plant, blocking any access.
A spokesperson for the New Zealand Ministry of Foreign Affairs said the ministry is aware of the situation.
“MFAT is aware of some protest action at the Prolesur factory in Los Lagos. There is no indication that people are in danger or that foreign nationals, including New Zealanders, are at risk,” the spokesperson said.
Fonterra did not immediately respond to a request for comment.
The dairy giant, which merged Soprole and Prolesur into one entity in early 2021, has announced its intention to sell the asset, which could be worth as much as $800 million. It may provide an update at next week’s annual earnings result.
Early this week, more than 200 members of the Chilterra workers’ union and Mapuche representatives launched a demonstration against the company, demanding a working group with company executives to address the situation. This is largely linked to what they say is an unfair milk price that doesn’t cover costs. The number of Chilean dairy farms has dropped from 20,000 to 4,000 over the past decade, according to Chilterra.
In a public statement, the union said that companies like Soprole (Fonterra) and Nestlé “impose arbitrary conditions on producers, creating a chain of problems that end up impacting workers, because of the impact of low milk prices on wages and in extreme cases, on job stability”.
The union said it is working to bring to light the gap between the international price paid to the producers versus the price paid to Chilean producers by transnational companies.
Chilterra, which is made up of a series of farms, is a key supplier for Prolesur and one of the nation’s biggest producers. The company, however, has run into significant financial difficulties.
Representatives from the union blame Fonterra for the company’s troubles, arguing that the dairy giant has consistently paid a low milk price.
“Fonterra’s days in Chile are numbered, they are going to lose their millions of dollars in investment,” the source said.
Union leader Erwin Huentrepan told Rio En Linea that the workers had taken the plant.
“We are going to take control of the company at the access points and part of the operations, as a way to pressure the employer,” he said.
“No truck leaves or enters by any means.” The protestors did allow plant workers to remove their vehicles first, he said.
