France fears empty dairy shelves

It squeaks and creaks in the French dairy market. The consequences of the corona pandemic, rising inflation, war in Ukraine and, on top of that, extreme drought, are driving dairy prices to record highs and the end is not yet in sight. 

In June this year, French consumers paid 4,5% more for a liter of milk compared to a year earlier. The price of yogurt also rose by 4,5%, cheese became 5,2% more expensive and butter was even 9,8% more expensive. The French milk producers, united in the economic commission Cniel, sound the alarm. The organization does not foresee a drop in prices for the foreseeable future and even expects supermarket shelves to become empty as a result of a lack of precipitation, the French news agency AFP reported. 

Worst drought in 70 years
France has been suffering from extreme drought since this spring. After a very dry month of May, followed by heat waves in June, July and August, France is dealing with the worst drought in 70 years. As a result, according to the French Ministry of Agriculture, grass production fell by 21% compared to the average in July. The situation is causing a lot of headaches for many dairy farmers. In the month of May, they already saw feed prices rise by 25,9% compared to May 2021. Add to that the increased diesel prices and the calculation is quickly made. Dairy farmers say that it is more profitable to sell cows than to buy feed. 

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