Savencia Fromage & Dairy, the France-based group, has reported a fall in annual sales, pointing to an “imbalance” in the sector worldwide.
Sales for the company, formerly known as Bongrain, fell to EUR4.44bn (US$4.94bn) in 2015 from EUR4.61bn in 2014.
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Savencia Fromage & Dairy said it had seen “a significant increase” in milk production in Europe, North America and Australia, combined with a slowdown in exports to China. It also cited the ongoing Russian embargo on dairy products from markets including the EU. Those factors worsened what Savencia described as a “crisis” in Europe’s dairy sector.
“The resulting significant drop in the price of dairy raw materials and world prices for industrial products accentuated the dairy industry’s crisis both in France and in Europe more generally,” Savencia said.
In its cheese arm, Savencia said sales fell to EUR2.6bn from EUR2.72bn a year earlier. The fall came from declining prices in all markets in line with the falling world price for milk.
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In its other dairy products division, which comprises including long shelf-life cream and butter, Savencia recorded a fall in sales from EUR1.99m to EUR1.96bn. The company said excess milk production worldwide had led to low prices for industrial products. It did however see “favourable” sales volumes of “higher added-value” products.
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