The Lactalis group announced on Wednesday evening that it would reduce the volumes of milk collected on French farms for international markets from the end of 2024, in order to focus on products sold in France, which are more valued.
The reaction of farmers was strong and swift. On Thursday, Arnaud Rousseau, president of the FNSEA, described this decision as “an explosion for the dairy sector” on FranceInfo.
“This is not good news”
“Last night we learned that Lactalis will no longer collect nearly 450 million milks until 2030,” he said, considering it “too early” to assess the number of herds that could disappear.
The French dairy giant announced on Wednesday evening that it would gradually reduce its annual collection of “around 450 million litres” of milk from French farmers, “of around 5.1 billion litres” of milk, from the end of 2024 to 2030. The group considers it necessary to “refocus on French consumer products, which are more valued because they are less subject to the ups and downs of world markets,” according to a press release.
Reduce milk production
After years of agricultural tensions over the issue, Lactalis finally announced in April a new formula for calculating the price of milk, revaluing the price paid to farmers to 425 euros per 1,000 litres, taking into account a “farm cost price” – that is, let’s say the estimate of what a farmer should receive to earn a living. It warned at the time that it was considering reducing overall milk production.
Lactalis’ product range is made up of 50% consumer products sold in France, 20% consumer products sold for export and 30% industrial products sold on the “dairy products” markets (butter, milk powder, etc.), subject to fluctuations in world prices.
Source: BFM TV
