News Retail
Belgian supermarket chain offers fixed milk price
Colruyt Group offers dairy farmers a fixed milk price for part of their production for a period of 5 years. The Belgian supermarket chain states that this offer fits in with the ambition to supply as many areas in Belgium as possible and to support local farmers.
Colruyt has signed a deal with the dairy company Inex† The 450 dairy farmers who are affiliated with Inex can receive a fixed milk price for 5 years of €34,76 per 100 liters (€33,71 per 100 kilos) for 15% to a maximum of 30% of their milk production. The dairy farmers have 6 weeks to think about the offer. Colruyt wants to guarantee farmers steady sales and more income security.
Selling under the private label
If enough dairy farmers join the initiative, Colruyt will sell the dairy products produced under this agreement from April 2020 under its own brand. The chain and the dairy company say they have done a lot of calculations to determine the fixed milk price.
"We are convinced that the stable price of €34,76 per 100 liters offers dairy farmers more income security and allows them to invest further and grow sustainably," says Stefan Goethaert, General Manager of the Fine Food, Private Label and Business Unit. Retail Services at Colruyt, in a statement.
Apart from sales prices
The fixed price is separate from the sales prices in the stores, Colruyt emphasizes. These continue to track the prices of the competition. "A stable and transparent milk price puts an end to the price fluctuations that Belgian dairy farmers often have to contend with," says Goethaert.
Eric the Thrush
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