French farm-gate milk prices are set to rise by more than 26% during the second quarter of the year, according to the national milk producers’ federation, the FNPL.
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Milk production costs have risen steeply this year, while producer numbers have fallen steadily, too.
Since 2003, nearly 19,000 French farmers have left milk production at a time when prices were declining. Between 2003 and 2006, producer prices fell 10% following reforms to the EU’s Common Agricultural Policy.
The fall in prices led to a 7-8% saving for French retailers, according to the French national statistics agency INSEE.
However, over the same period, retail prices rose by six index points against 2003 levels.
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By GlobalDataAccording to dairy manufacturers’ association president Olivier Picot, consumers can now expect to pay up to 10% more on retail dairy products, provided retailers take a cut in their margins.
