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Milk price: Lactalis faces refusal from producers after a proposed increase

2024-02-04T19:20:18.925Z

Highlights: Lactalis proposed an increase of 15 euros per 1,000 liters of milk to its farmers for the first two months of 2024. But according to Lactalis, Unell, which represents more than 4,000 dairy farms delivering more than 2 billion liters, rejected this proposal. According to Les Échos, the producers' organization is demanding an increased of 5%, compared to the 3.7% proposed by the milk giant. The negotiations are continuing under the aegis of mediation.


The milk giant proposed an increase of 15 euros per 1,000 liters of milk, but it was rejected by producers. The negotiations


Milk producers remain firm.

The global milk giant Lactalis proposed an increase of 15 euros per 1,000 liters of milk to its farmers for the first two months of 2024, but the latter refused it, according to the dairy industrial group and according to Les Échos.

“In a constructive spirit, Lactalis France is revising its January price by increasing it from 405 EUR/1,000 liters to 420 EUR/1,000 liters in 38/32 and is increasing it by 15 EUR also in February to 420 EUR.

This effort corresponds to 15 EUR more than the Unell-Lactalis contractual formula,” Lactalis said in a press release on Saturday.

38/32 milk is the industry standard and means 38g of fat and 32g of protein per liter.

All premiums combined, this brings the total remuneration to producers “to 460 EUR/1,000 liters over the first two months of the year”, argues the industrialist.

But according to Lactalis, Unell, which represents more than 4,000 dairy farms delivering more than two billion liters of milk to Lactalis, rejected this proposal.

Contacted on Sunday, Unell was not immediately available to comment on this information.

According to Les Échos, the producers' organization is demanding an increase of 5%, compared to the 3.7% proposed by Lactalis as a compromise.

“Lactalis France will continue the dialogue with Unell under the aegis of mediation,” Lactalis confirmed on Sunday.

“Far from the needs of breeders”

In mid-January, before the national mobilizations of farmers demanded, among other things, better incomes, milk producers demonstrated in front of several Lactalis sites in the west of France to denounce the price of 405 euros for 1,000 liters (i.e. 40 cents per liter), set according to them unilaterally by the group and which “does not take into account at all the Egalim law” which provides for “the negotiation and integration of the production costs of milk leaving our farms”.

Read also: Anger of farmers: why the Egalim law causes so much tension

Currently, the price of milk "is far from the needs of breeders in view of the evolution of production costs and the investments necessary to maintain their activity and attract young people", had denounced shortly before the dairy section of the Regional Federation of the Western Farmers' Unions (FRSEAO).

To calm the anger of farmers, Prime Minister Gabriel Attal promised on Thursday a “strengthening” of the Egalim law, with “massive controls” on manufacturers and distributors, as well as sanctions against those who do not respect this law.

Source: leparis

All business articles on 2024-02-04

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