Responding to a request from the main producers’ unions, the industrialist reached an agreement on part of the producers’ remuneration, ahead of negotiations with the distribution brands.
Now in pole position in negotiations with large retailers, the dairy group Lactalis (President, Lactel, Bridel) and Unell, an organization representing breeders, announced on Friday November 15 that they had agreed on part of the price of milk purchased by the industrialist. The latter can therefore start negotiations with large retailers. “This agreement will allow Lactalis France to enter into commercial negotiations at national level with large retailers as soon as possible”write in a press release the leading French agri-food group and the organization bringing together the majority of breeders who produce the milk for its cheeses and yogurts.
They explain having “acted (…) a new revaluation of agricultural raw materials”+10 euros per 1000 liters, within the calculation formula determining the price paid to breeders. This increase only concerns part of the industrial outlets, not dependent on world prices: consumer products (PGC) France, in other words Lactalis products sold in stores in France. “This decision will have a positive impact on the remuneration of producers”add Unell and Lactalis, without giving an estimate of the final price for the breeder, which depends on the value given to agricultural production but also on the prices at which Lactalis will export its products.
Safeguard producer remuneration
This communication comes a few days before a national mobilization of agricultural unions FNSEA (National Federation of Agricultural Operators’ Unions) and JA (Young Farmers). For several months, the latter have been demanding that milk manufacturers come to an agreement with producers on a purchase price, before starting to battle with mass distribution brands over the prices of the final products. Each year, annual trade negotiations shake up the agri-food ecosystem for several months. Farmers refuse to allow the desire of large retailers to pay as little as possible to ultimately impact their income.
At the start of the week, keen to show its support for the agricultural world, the French food distributor Les Mousquetaires/Intermarché affirmed that it would not begin any negotiations with dairy manufacturers. “as long as no agreement” with milk producers “will not be concluded”. Lactalis also announced at the end of September that it was going to reduce its milk collection in France, and therefore soon part ways with around 300 suppliers, with the aim of paying better for each tonne of milk. As a union bringing together several producer organizations collected by Lactalis, Unell has mandated a firm to seek new outlets for the breeders concerned.
Belgium
