Milk prices paid to French producers are set to rise by around 20% in the last quarter of the year on the same period in 2006, according to France’s milk producers federation, the FNPL.

It said the hike was due to “considerable tensions on European markets, particularly in Germany”. The FPNL added that the tensions were due essentially to “a relative disaffection among milk producers in Europe following repeated decreases in prices”, which many industry watchers see as being linked to EU policy in the sector from 2003.

The price rise will work out at an average increase over the year in France of EUR58 (US$81.74) per 1,000 litres of milk collected and take prices to between EUR330-340. 

“We see the same trend in milk prices continuing in the first and second quarters of 2008, an FNPL official told just-food.