The dairy group Lactalis (President, Lactel, Bridel) and an organization representing breeders announced this Friday that they had agreed on part of the price of milk purchased by the manufacturer. A major step, since it allows negotiations to begin with major retailers.
Lactalis against the producers: the agri-food industry increasingly isolated
« This agreement will allow Lactalis France to enter into commercial negotiations at national level with major retailers as soon as possible. », They confirm in a joint press release. As an indication, Unell represents 62% of the dairy giant's needs.
A positive impact on remuneration
In detail, the two actors explain having “ recorded (…) a new revaluation of agricultural raw materials », of 10 euros per 1,000 liters, within the calculation formula determining the price paid to breeders. This concerns part of the industrial outlets, not dependent on world prices: consumer goods (PGC) France, in other words Lactalis products sold in French stores.
« This decision will have a positive impact on producer remuneration », add Unell and Lactalis. However, they do not give an estimate of the final price for the breeder. As a reminder, this depends on the value given to agricultural production, but also on the prices at which Lactalis sells to other manufacturers for export.
Drastic reduction
The Lactalis group announced at the end of September that it would reduce its milk collection in France by 450 million liters, and therefore soon part ways with around 300 suppliers. Stated objective: pay better for each tonne of milk. As a union bringing together several producer organizations collected by Lactalis, Unell has since mandated a cabinet to seek new outlets for the breeders concerned.
Producers let go by Lactalis confident of finding buyers
At the beginning of November, Unell was even rather optimistic about the possibility of finding buyers. “Overall, in the two areas concerned, the West (south of Pays de la Loire, editor's note) and the East, the purchasing potential of the dairies consulted, around twenty, seems to make it possible to cover the volumes produced by our farms”, rejoiced, with The Tribune, Yohann Serreau, president of Unell. These identified dairies even seem able to absorb milk from breeders who are not members of Unell.
The next phase will involve refining this diagnosis. Unell's objective is therefore to identify at least one solution for each producer by the end of the year, while leaving everyone free to accept it or not. It will then be about “connect, at the beginning of next year, producers and buyers collectively”, in order to strengthen the weight of the former and simplify the exchanges of the latter, added Yoann Serreau on this subject.
Strained relationships
This communication comes a few days before a national mobilization of the agricultural unions FNSEA and JA, which are demanding in particular remunerative prices. Unions have been asking for months for milk manufacturers to agree with producers on a purchase price. This, before starting to fight with the brands over product prices.
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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 ».
(With AFP)
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