The sector of lait is in danger in France and the revaluations conceded by the supermarkets are insufficient for the sector, already on the edge of the abyss. This Friday, the Ministry of l’Agriculture therefore called the signs of the grande distribution to accept the price increases requested by milk producers.
“We are at a turning point: distributors must take their responsibilities, brands must agree to pass the increases [de tarifs] to guarantee the remuneration of farmers and ensure the sustainability of the dairy industry”, demanded the ministry during a point with the press. The resumption in mid-March of negotiations between supermarkets and agrifood manufacturers, to pass on the increases in production costs linked to the war in ukrainehas turned “into a permanent round of negotiations”, he denounced, accusing the brands of having “dragged out” the discussions.
Inflation strangles producers
If they were “rather successful” this summer with fewer blockages, admits the ministry, the negotiations led to increases “quite significant without being sufficient”, and which remain well below the demands of the industrialin particular those of meat or fresh vegetables.
Among the distributors, “some play the game, others less”, underlines the ministry, and the increases obtained would be, according to him, of the order of “6-7%” instead of the 12-13% expected by suppliers. They, like farmers, have suffered very significant increases in their production costs in recent months – and the trend is not regarding to be reversed, energy prices (gazelectricity) reaching unprecedented levels.
Soon forced to import milk?
Fearing that a “fairly bleak horizon” is emerging for many food industries, the ministry was particularly worried regarding the milk industry, whose producers “see their remuneration blocked” around 50 euros below the purchase price. European average for 1,000 liters.
The drought historical, who struck l’Europe this summer, reduced the production of grass to feed dairy cows, and drove up the price of animal feed by around 25%, further strangling farmers. “If we refuse to pay for the milk at the price of its production costs, tomorrow we will be forced to import it,” fears the Ministry of Agriculture.
Milk, loss leader
“Milk is a loss leader. Today, some stores sell it at 0.72 cents / liter while below 0.78 cents, this does not cover the cost of production, “denounced Friday Christiane Lambert, president of the majority agricultural union. FNSEAduring a trip to the Châlons fair.
It asks, like the other professional organizations and the National Federation of Milk Producers (FNPL), that the liter sold on the shelves be revalued at the symbolic price of one euro. The FNSEA is also calling for the opening of an investigation by the Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF) into logistics penalties, which apply when suppliers are unable to deliver. their products on time.
