News Milk
French dairy farmers angry about price reduction
French dairy farmers revolt against their milk processors. At first they turn against Sodiaal (a cooperative) and Lactalis. According to the dairy farmers, these two want to further reduce the milk price in the coming months, against the agreements. This while the costs are rising.
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The first protests by dairy farmers took place at the beginning of the summer. In July, Lactalis had already unilaterally established a new contract with suppliers with a basic price of €41 per 100 liters. In August, the company also activated an emergency clause because, according to the company, costs had risen too much and customers - especially the large French supermarkets - no longer wanted to pay. There does not appear to be much room for improvement at Lactalis towards the end of the year, although the company does express its intention to reach an agreement with the farmers.
Amazement
In an interview with a French dairy farmers' magazine, milk supply director Patrice Moulin expresses some surprise at the farmers' reaction. The milk price has risen by 2022% since the beginning of 23, while farmers' costs have increased by no more than 15%, according to him. His statements do not help to soften the suppliers' mood. The members of the Sodiaal cooperative couldn't be happier. Sodiaal pays out even less than Lactalis and has indicated that it expects a further reduction in the milk price by the end of the year. Members in the south of France are angry with Sodiaal and have therefore formed blockades. RMOs are plastered with slogans such as 'Sodial, thief!' Dairy farmers are now seeing their costs rise sharply due to drought and high energy prices, while processors are aiming for less milk money.
French people do business with French people
The strong milk price increases that were seen this year in Northwestern Europe have passed by French farmers. This is due, on the one hand, to the closed nature of the French dairy market - the French almost exclusively do business with French people - and on the other hand to the mandatory system of contracting between French processors and dairy farmers there. This does not promote free price formation. All prices are kept under control, except the price of butter. There is a major butter shortage in France and prices have risen to €7.700 to €8.000 per tonne. That is for French butter.