Milk prices paid to French farmers will rise by 37% during the first quarter of 2008, the industry body has predicted.
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Prices will increase by EUR103.7 (US$148.5) for 1,000 litres of milk, according to France’s milk producers federation, the FNPL.
Prices jumped by around 20% in the last quarter of this year compared to the same period in 2006.
The FNPL said the increases were being driven by market pressure. “In 2008, prices should lead to an improvement in producers’ revenues,” the federation said.
The FNPL added the hike at the start of next year was “absolutely necessary” as producers had been hurt by CAP reform in 2003.
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By GlobalDataThe federation told just-food that the price rises could tail off throughout the rest of 2008. “We’ll probably see a signifcant increase in the second quarter of 2008 but perhaps not as important as that in the first quarter,” a spokesperson said.
“As for forecasting the outlook for the second half of the next year, it’s a very difficult exercise. If there was an increase in the third quarter, it’s likely it would be less important than those in the first and second quarters. It’s possible the fourth quarter may not see any rise in prices at all given the increase in the current quarter. But really all this is conjecture.”
