Milk Crisis in Southern Chile: Competition Tribunal Accepts Manipulation Charges Against Prolesur

In a case that could send shockwaves through the dairy industry, the Tribunal de Defensa de la Libre Competencia (TLC) in Chile has declared admissible a lawsuit against Prolesur. The company is accused of "abuse of dominant position and price manipulation" to the detriment of local producers. Prolesur is controlled by Soprole Inversiones, which is a part of Peru's Gloria group.

Accusations and Implications

The lawsuit filed by Chilterra S.A. exposes alleged economic exploitation practices that compelled suppliers to sell their products under non-transparent and unilateral pricing conditions. "Prolesur has abused its dominant position in purchasing fresh milk, imposing unjustified prices through arbitrary and unverifiable criteria," remarked Ricardo Ríos, the manager of Chilterra.

This legal action seeks to address the alleged practices that have undercut the sustainability of the fresh milk production chain, a critical concern for national producers.

Response from the Industry

The case has drawn the ire of industry stakeholders, who argue that Prolesur's actions have severely impacted the livelihoods of local dairy farmers. The lawsuit could potentially lead to significant consequences, including financial penalties and a review of market practices.

The news adds another layer of complexity to Chile's dairy market dynamics, highlighting the ongoing challenges that producers face amid increasing competition and fluctuating market conditions.