reactions from the dairy industry after the announcement of the reduction in milk collection in France by Lactalis

Lactalis announced on Wednesday that it would reduce its collection in France from the end of the year.

Milk producers in eastern and western France are worried about their future. Lactalis has announced a gradual reduction of nearly 9% of its milk volumes collected in France from the end of the year. The dairy giant wants to withdraw from international markets to better focus on France, a decision that has shocked farmers.

Dozens of milk producers are going to lose their contracts with Lactalis. A unilateral decision that angers the president of the FNSEA, France’s leading agricultural union, Arnaud Rousseau: “When we talk about food sovereignty, the ability to produce – and this is what we have been promoting for over a year now – we have a very concrete example, which is a shock for the dairy industry, that we need to continue to fight to produce milk in particular.” In detail, 272 farmers are concerned. A hundred in Vendée and the rest in four eastern departments: Haute-Marne, Marne, Vosges and Haute-Saône.

The National Federation of Milk Producers learned this on Wednesday, September 25, without consultation. Yohann Barne is its president and he feels powerless: “We can never oppose it since it is a contract that binds manufacturers with milk producers and Lactalis has always refused to make collective contracts. These are individual contracts so each producer will receive a letter in their farmyard announcing that on a certain date Lactalis will no longer collect. We have already organized ourselves at the FNPL to support producers and above all not to leave any of them without a solution, on the side of the road, which would be impossible for them.” That is to say, trying to find outlets, the producers concerned therefore have a few months. The dairy cooperative Unicolait also loses its contract, but it has 5 years to turn around. The producers are asking at least to align the deadlines.

Lactalis decides to reduce the volume of milk collected because it wants to withdraw from international markets. This is why we talk about surplus milk: 5 billion liters per year produced in France, but sold abroad. It is transformed into powder most often for export. The price is set according to world prices, which are therefore very volatile.

Lactalis wants to reduce by 450 million liters each year. Yohann Serreau, president of Unell, the national union of Lactalis delivery farmers, understands this strategy. He is the one who sets the price of milk with the dairy group in France: “The ingredients market is still a very volatile market. It is sometimes very high, but most often, it is very low. So strategically it is not unheard of, however in France there is a need for milk because there are beautiful products that are manufactured and other companies need milk. So a drop in collection does not mean a drop in production.”

On the other hand, he does not understand why breeders are targeted: “It’s completely inconsistent and imposing it on the producer is completely disconnected from the reality of what agriculture is today. What we’re asking is that they review their plans. If they expand the areas, there are producers who will be willing because they will find other outlets, other customers. You have cooperatives and then private individuals who need milk and announce it. They are looking for producers to be able to supply their end customers.”

All the more so since Lactalis does not want to review the remuneration of breeders. The price is relatively high at the moment, around 450 euros per 1,000 liters: “In theory, mathematically, the price of milk should increase if there is a drop in Lactalis’ collection and we have not had any guarantees. Today, the proposals on Lactalis’ table are the proposals of an industrialist who only looks after his own interests and not those of the sector and producers.” Yohann Serreau will hold numerous meetings to obtain satisfaction.