French dairy groups, producers and co-operatives have reached a deal on milk price increases in the second quarter of 2010 following talks earlier today (30 March) in Paris.
The negotiations were chaired by France’s agriculture minister Bruno Le Maire, who, before the talks began, had come down firmly on the side of producers, who had seen incomes fell by up to 50% in 2009.
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Le Maire had underlined it was important that the industry-wide agreement signed last June and which made provision for prices to rise by 5.8% in the second quarter of 2010 be respected.
Dairy groups had said the June agreement was no longer pertinent and insisted that it would not support the hike in the second quarter.
However, in an apparent climbdown, processors have inked a deal covering the next three months that, according to producers’ federation, the FNPL, will see milk prices rising an average of 9% on the second quarter of last year.
Nevertheless, in return, the processors have succeeded in getting a new index introduced in the calculation of milk prices, which takes into account prices in Germany and which will apply from 1 July. German milk prices are around 15% lower than in France.
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By GlobalData
