Bongrain has seen a decline in second quarter sales as higher domestic milk prices hit the dairy group’s competitiveness in France.
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The French firm said turnover totalled EUR1.58bn (US$2.25bn) in the period ended 30 June, down from EUR1.76bn for the comparable period of last year.
While the company saw a rebound in its cheese sales during the second quarter compared to the first three months of the year, sales were nevertheless down 6.5%. Sales of other dairy products dropped 17.4%, the company added.
Bongrain said that the high price it pays for milk in France – which was agreed at an industry-wide level to settle an altercation on price with protesting farmers – hampered its ability to deliver products that are priced in-line with global dairy prices.
“In France, the high price of milk promotes imports from other European countries and affects the competitiveness of exports,” Bongrain said.
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By GlobalDataThe company said that it has responded by developing its brands through innovation and promotional activity.
Bongrain’s interim results will be released on 27 August.
