The giant Lactalis and its suppliers announce that they have reached an agreement on the price of milk

2024-03-01 12:45:23

Baptiste Morin with AFP // Photo credit: DAMIEN MEYER / AFP
modified to

6:28 p.m., March 2, 2024

Lactalis and the organization bringing together the majority of French breeders who supply it with milk announce that they have reached “an agreement on the price of milk” for the first quarter of 2024. This “is thus set at 425 euros” per 1,000 liters for the basic milk, or five euros more than the manufacturer’s last proposal, indicates a joint press release.

The world number one in milk Lactalis and the organization bringing together the majority of French breeders who supply it with milk announced on Friday that they had reached “an agreement on the price of milk” for the first quarter of 2024. “The price for the months of January, February and March is thus set at 425 euros per 1,000 liters for basic milk, or five euros more than the manufacturer’s last proposal, according to a joint press release.

The conflict between the French agri-food leader and the National Union of Livestock Breeders Lactalis (Unell), which represents 60% of its conventional milk suppliers, has fueled the anger of farmers in recent weeks. The company has been targeted by several demonstrations. Again on Tuesday, members of the Confédération paysanne took over its stand at the Agricultural Show to denounce milk prices that were too low. Lactalis and Unell have been in mediation since January 29.

“Bringing serenity to build the future”

“The parties each welcome this shared agreement. After several weeks of tensions and uncertainties, it should provide serenity to build the future,” it is indicated in the press release. “In-depth work” continues “on adjustments to the contractual formula” from which the price of milk is developed. This formula takes into account the production costs of breeders but also the prices at which Lactalis manages to sell the products made from their milk on the national market and for export.

On the breeders’ side, this announcement is seen as a victory. Two cents more per liter of milk, for the farmer who produces it, that represents 5,000 euros per year. For Stéphane Joandel, breeder in the Loire and vice-president of the National Federation of Milk Producers, he is relieved by the very existence of the agreement: “It is a basis for discussion, which will manage to get things done and to make reason heard. When agreements are signed, there are no more tensions. And when there are no more tensions, we will be able to discuss with dignity. And I openly hope that Emmanuel Besnier [PDG de Lactalis, ndlr] will respect the producers”. He estimates that a producer should be paid between 45 and 50 cents per liter of milk.

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