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.
Lactalis has become one of the most acquisitive dairy producers over the 2007-2012 period. It moved to third position in global dairy following the acquisition of Parmalat in 2011. The company has con...
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