A deal to increase French milk prices remains some way off despite reports over the weekend, the dairy processing industry trade body, the Fédération Nationale de l’Industrie Laitière, has said.
On Friday, the FNIL, together with retail groups and trade bodies representing milk producers, held talks at the Ministry of Agriculture to discuss a hike in prices.
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The discussions led to reports claiming an agreement had been reached to raise prices by EUR0.03-0.04 per litre.
In a statement, the FNIL said the discussions had only concerned possible hikes on private-label and discount products for butter, cream, drinking milk and emmental cheese and had not included some of the main categories of retail goods or exported products.
"It is therefore impossible at the present time for there to be any assurances on a minimum price per 1,000 litres which certain parties have been announcing. The FNIL is committed to passing on in full to milk producers any increases agreed to by retailers," the FNIL added.
A spokesman for the FNIL hinted room for manoeuvre to raise prices was tight in a context of over-supply.
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By GlobalData"Let's not forget that prices in northern Europe are currently around EUR280 euros/1000 litres whereas in France it's EUR300-310/1,000 litres."
Meanwhile, farmers today targeted trucks carrying food products from Germany, blocking them from crossing the border into France.
The move angered Germany's dairy industry federation, the MIV, which today wrote to the European Commission to express its concern.
