Savencia Fromage & Dairy is looking to take over the running of Compagnie des Fromages et Richesmonts (CF&R), a local cheese venture it runs with fellow French dairy major Sodiaal.
The plans remain subject to competition approval, Savencia told just-food.
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“This project will help CF&R’s development, benefiting from Savencia’s cheese specialties know-how and international network,” a Savencia spokesperson said.
Savencia Fromage & Dairy and Sodiaal will continue to each own 50% of CF&R, the spokesperson added.
According to Savencia’s 2019 annual report, the company ranks as the second-largest cheese maker in France and fourth biggest worldwide.
In 2018, net sales from Savencia’s cheese products rose by 1.2% year-on-year to EUR2.8bn (US$3.1bn), accounting for 57.5% of the company’s total consolidated net sales of EUR4.86bn.
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By GlobalDataThe plan for CF&R came as Savencia announced its sales for the first nine months of 2019. Net sales increased 3.4% to EUR3.65bn.
“The high price for milk linked to France’s EGAlim law, more favorable world prices for industrial products, international tensions and hyperinflation in Argentina could impact the performance of the second half of the year,” Savencia said.
The EGAlim law was part of the French government’s moves to improve trading relations in the agri-food sector, including fairer prices for producers.
Savencia added: “Within that environment, Savencia Fromage & Dairy announced proposals for changes in the governance of CF&R, the subsidiary it shares with Sodiaal. The proposals, which will only become effective after the information-consultation of CF&R’s staff representatives, and the agreement of the relevant competition authorities, shall result in the full consolidation of CF&R in Savencia Fromage & Dairy’s consolidated financial statements in 2020.”
