Bongrain said today (14 June) that it hopes its cheese venture with fellow French dairy group Sodiaal will strengthen both businesses amid a changing EU dairy sector.
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Bongrain and Sodiaal have agreed to pool their French cheese interests into a joint venture, in which both companies will hold a 50% stake.
Compagnie des Fromages, Bongrain’s French cheese arm and Fromageries Riches Monts, Sodiaal’s domestic cheese subsidiary will make up the venture.
A Bongrain spokesperson said the venture would boost the French cheese operations of both companies.
The spokesperson said dairy producers in the EU have had to face the effects of a new EU Common Agricultural Policy, which has reduced subsidies to the dairy sector and therefore put pressure on the supply of milk.
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By GlobalData“More companies are uniting together because they do not know whether farmers want to produce milk or not,” she told just-food. “Why have the two subsidiaries joined together? It’s simple – to be stronger.”
The venture will not lead to the closure of any production facilities, the spokesperson said, although she said it is “too early” to predict the impact on jobs.
Officials at Sodiaal could not be reached for immediate comment.
