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.
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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.
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By GlobalDataLactalis was not available for comment at time of press.
