FRANCE: Dairy producers condemn Lactalis milk price cut
Farming union hits out at milk price cut
Dairy producers have hit out at a move by French dairy firm Lactalis to lower the price it pays farmers for milk.
Lactalis announced last week (20 September) that it would lower the price it pays its milk suppliers to EUR1 (US$1.3) for five litres of milk. The reduction will come into effect from 1 October.
The the National Federation of Milk Producers (FNLP) has said that it "strongly condemns" the decision.
A spokesperson said that the cut will come into force at a time when on-farm production costs are soaring and warned that the move endangers the sustainability of French dairy production.
According to the FNLP, Lactalis is not doing enough to drive higher sales volumes and dairy exports.
"The FNPL intends to use all means to challenge the decision," the farming body insisted, without elaborating on the specifics of the action it is considering.
Lactalis was not available for comment at time of press.
- Comment: Nestle reacts to world of 3G and Buffett
- Why it is too early to call Unilever food revival
- France takes big step to uniform FOP labels
- What the analysts say: The verdict on Danone's Q1
- How will Flowers Foods grow in speciality bread?
- Unilever food, refreshment sales rise
- Fonterra says rain needed to maintain milk supply
- Organic food sales in US up 11% in 2014
- UPDATE: Danone CEO upbeat on 2015 growth
- Nestle in "exclusive" Davigel talks with Brakes