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The Struggle of Dairy Farmers in Ancud, Chile

Chile 06.05.2025
Source: dairynews.today
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Small dairy farmers in Ancud, Chile, face existential threats due to low milk prices and lack of support.
The Struggle of Dairy Farmers in Ancud, Chile
In the northern region of Chiloé, specifically in the commune of Ancud, there is rising concern among the dairy sector. Farmers are grappling with low milk prices and a stark lack of substantial support for agriculture.

"Since November or October last year, we started having payment issues with Chilolac," laments Miguel Oyarzo Ruiz, a local dairy farmer. Payments have been significantly delayed, now lagging back to early December with a base price per liter starting at 215 Chilean pesos. The uncertainty in the sector is further aggravated by the delayed payments from Chilolac and the departure of larger producers to firms like Nestlé, leaving smaller farmers struggling. According to Oyarzo, many have ceased milking operations, deeming the activity unsustainable without timely financial returns. Despite municipalities' mediation efforts, the overall support for these farmers seems lacking.

In Chiloé, the situation appears grim, especially for those producing below 800 liters. They are left to wonder if Chilolac will continue its operations, as it currently handles the bare minimum of milk production. From once receiving 100,000 liters, it now takes in only about 20,000 liters, primarily from small farmers who still strive to continue their legacy. "We hope that Chilolac will allow us to live and raise our children in the future," Oyarzo underscores the desperation of the local farming community.

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