Milk Crisis. Lactalis and Producers have reached an Agreement

General News Local News
An agreement has been reached to resolve the Milk Crisis

On Monday, the FNSEA had increased the pressure on the dairy group Lactalis, and a resumption of negotiations on the milk purchase price was set Tuesday morning. These discussions eventually led to an agreement between Lactalis and dairy farmers.  Actions by farmers has ended.

Two rounds of talks held with Lactalis last week had ended in failure, the third time was the right one. An agreement has indeed been found Tuesday on the milk price between the producer organizations and the giant Lactalis, announced shortly after noon Sébastien Amand, one of the producers’ representatives present at the negotiations that took place at the Laval prefecture.

Farmers announced to end their protest actions . “As Lactalis has taken a step, it makes it too” , said a spokesman of the main agricultural union. The producers had multiplied since Monday the blocking actions of Lactalis and consumer awareness campaigns throughout the country.

Lactalis bought milk for 256.90 euros per tonne, well below the price paid by other processors, as the company Silav pays 290 euros per ton and Saint-Père, a subsidiary of Intermarché pays 300 EUR 1 000 litres.

300 EUR 1000 litres in December

The agreement provides for an increase of 5 euros the price per ton of milk every month until the end of the year, EUR 280 in August to 300 euros in December, earning 275 euros to the price on any the year. The agreement also provides for a cessation of all trade union rallies on Lactalis sites.

“This milk prices can give a perspective of € 300/1000 liters on the end of the year 2016” , said Michel Nalet, spokesman of the Lactalis Group, in a statement.

“The milk price negotiated by the Lactalis group for the coming months is well above its economic environment and its main competitors cooperative, including the distribution of activities is similar to ours” , he added.

FNSEA contented

According Lactalis, the agreement relates to “150 million euros in 2016” support to farmers in relation to its contractual commitments.

“To put an end to many erroneous information, it is important to remember that since the beginning of the crisis, Lactalis has always said the price of July (257 euros, Ed) was and is not representative of the of the year ” , the statement said.

Union side, the general secretary of the FNSEA, Dominique Barrau, welcomed the agreement. “We see it as a step taken. It is important that Lactalis back into line ” , he said.

Dominique Barrau also indicated having requested a meeting with the leader of Lactalis. “We like to meet him to talk with him about the future. We can not stay on this way of working ” , he said.

This agreement was reached after a week of conflict during which the unions have attacked various sites and branding world leader in dairy products .

Last week, the producers had refused an offer to EUR 281 thousand liters .

Valls satisfied

Prime Minister Manuel Valls has reacted to this agreement via his Twitter account, where he expressed his “satisfaction” noting that “output positive crisis” .


Milk production in France

Leave a Reply

Notify of