The Competition Authority on Thursday raided four major French dairy companies, including number one Lactalis, suspected of “having implemented anti-competitive practices” in the collection of cow’s milk, concordant sources told us on Friday.
The Authority announced on Friday that its investigative services had “proceded yesterday [jeudi]prior authorization from a judge of liberty and detention, to unannounced visit and seizure operations of companies suspected of having carried out anti-competitive practices in the cow’s milk supply sector”.
“At this stage, these interventions obviously do not prejudge the guilt of the companies affected by the alleged practices, which only a thorough investigation will allow to establish, if necessary,” the Authority added in a press release. Consulted by AFP, the Authority did not want to say more.
“Seizure of documents”
“There were seizures of documents in Sodiaal, Savencia, Eurial and Lactalis,” a concerned industrialist, speaking on condition of anonymity, told AFP, confirming the information from Le Figaro. “We confirmed the visit of the Competition Authority to the Eurial facilities yesterday [jeudi] in Nantes,” a spokesman for the Norman cooperative group Agrial told AFP. Eurial is the dairy branch of Agrial. Sodiaal, the main French dairy cooperative that collects 20% of French milk, also confirmed to AFP.
Asked, Lactalis declined to comment and Savencia did not immediately respond. The giant Danone, for his part, told AFP that he had not received a visit from the authorities.
Optimize Collection
According to the aforementioned industrialist, the Competition Authority is investigating “a principle that has existed for decades, which consists of optimizing the collection round.” Dairies often pick up milk from a nearby farmer, even if they are under contract to a more distant competitor, who is responsible for paying them. The processors then reimburse each other.
“The shorter the collection, the more you minimize the health risks,” defends the industrialist, for whom the practice also has an “ecological” interest by limiting the kilometers traveled by trucks. This also allows breeders to choose the industrialist who will pay them, according to this source. On her website, the dairy interprofessional Cniel talks about “exchanges of good practices between cheese factories”.
The Autorité de la concurrence points out that “companies not visited” can present their “leniency program”: companies that denounce their past or current membership in a cartel can benefit from favorable treatment, with “total immunity or part of the fine incurred”. .
Source: BFM TV
