Valdivia, capital of the Chilean province where protests at a Fonterra factory broke out this week. Photo / 123RF
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 BusinessDesk.
But a Chilean news website on Friday morning (NZT) said access to the Prolesurdairy 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.
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."
A city government ute set alight last Sunday in a march marking the 49th anniversary of a right-wing coup that toppled President Salvador Allende in Santiago, Chile. Photo / AP
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.
