French milk supply is falling less rapidly

Production in January is only 0,28% lower than the same month in 2023. This means that the downward trend shows a weakening that is tending towards stabilization. 

The French supply has been under considerable pressure recently. To start with, according to Eurostat data, France produced 2021% less in 1,63 than in 2020. In 2022, milk production fell less sharply by 0,59% than the year before. French milk production fell more sharply again in 2023 when the difference increased to 2,64%. 

Lactalis is doing good business
The slowing decline in milk production will likely be welcomed by Emmanuel Besnier, CEO of French dairy giant Lactalis. He recently spoke out in the French media about his own performance and the sector. In it he assures that all Lactalis French dairy products are made exclusively from French milk.

In the interview, Besnier also says that the company has experienced exceptionally high inflation in all production costs over the past two years, resulting in prices having to be increased. But despite the increased prices, the French continued to buy dairy products, Besnier says. The CEO says that sales of, among other things, the brand 'President' increased last year to more than €1 billion in France and almost €3 billion worldwide.

Hopeful about organic sales
Inflation also affects the organic sector. As consumers have adjusted their eating habits due to reduced purchasing power, the consumption of organic milk in France plummeted somewhat to one crisis led. Lactel, part of Lactalis, says it has anticipated the declining consumption of organic milk and claims to have weathered the downward trend better than other companies. According to chairman Anne Charlès-Pinault, the company will continue its efforts in this area. For example, the organic label was already promoted in stores last year and Lactel will continue to do so.