The French government has brokered a last-minute deal between embattled French dairy group Entremont Alliance and its suppliers on milk prices in July and August.
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Given its financial difficulties, Entremont had put an offer on the table of 20.5 centimes per litre of milk, well short of the industry-wide agreement signed on 3 June, which makes provision for 27.5 centimes per litre.
Faced with the prospect of re-igniting the anger of dairy farmers on the price issue, the government succeeded in convincing Entremont’s banks to inject a further EUR10m (US$14.2m) of funding, allowing the group to increase its offer to producers to 24.5 centimes/litre for July and August.
“We have gained two months in which to examine bids for Entremont within a good industrial relations climate,” agriculture minister, Bruno Le Maire, said.
Last week, Entremont confirmed it had received a joint takeover bid from Sodiaal and Bongrain.
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By GlobalDataSodiaal already has strong links with Entremont Alliance. In July 2007 the groups agreed to integrate their baby food, elaborated milk ingredients and nutritional and dietetic operations.
