Farmers upset with milk price

Milk producers are outraged: Dairy giant Lactalis has unilaterally imposed a milk price of €405 per 1000 liters on its producers for the month of January. According to the producers, the price is much lower than the price. The sector is preparing for a move in the coming days or weeks.

“We thought this year would be better“ Disappointment shows in Gilbert Le Goff’s voice. On his farm in Le Cloître-Pleyben (Finistère), he produced 1.4 million liters of milk in 2023. But as early as 2024, the vice-president of the milk department of the agricultural union FDSEA 29 is far from optimistic.

And for good reason, 2024 isn’t shaping up under the best of auspices. A leading French processor, Lactalis, has decided to negotiate downwards the purchase price of 1,000 liters of milk. “Lactalis does not want to pay 440 euros and wants to pay 405 euros per thousand liters, which is much less than what we are asking for”Gilbert Le Goff insists.

Other players in the sector, such as Sodial, are setting more favorable prices for breeders. In a press release, Sodial announces that it has ” decided to set for A base price of €440 per thousand liters for conventional milk in January and February 2024″Following a decision taken by its Board of Directors on November 30, 2023.

Problem: Lactalis, a leader in the field, “If it inspires negativity, the entire sector will suffer.”According to Gilbert Le Goff. “This is the lowest price for 405 Euro lactalis. They can pay the same price as their competitors in the field. Giant has the means to pay.”

Lactalis unilaterally decided to set the price of milk at 405 euros, without consulting producer associations.

Gilbert Le Gough

Vice President of Milk Department at FDSEA 29

At the national level, the National Federation of Milk Producers demands “Strict Application of Egalim Law to All.” and adds: “With the National Interprofessional Center for Dairy Economy’s cost price index showing an increase of 7%, FNPL will not let up the pressure to maintain producers’ margins, if there is any left.”

According to the Ministry of Agriculture, “The law of October 18, 2021 with the aim of protecting farmers’ remuneration (EGALIM 2) makes it possible to better take into account farmers’ production costs, thanks in particular to taking into account cost and price indices and the game of clauses. Automatic price correction.”

For Gilbert Le Goff, producers’ remuneration should be put back at the center of the debate and calls for action. “To bring Prime Minister Lactalis back to his senses. 440 euros would not really be too much in the moment we are going through. That will cover the cost, and then some. We are still experiencing inflation. We don’t talk much about producers’ remuneration.”

Producers must be paid fair value for time spent.

Gilbert Le Gough

Vice President of Milk Department at FDSEA 29

In a press release, Lactalis assures that negotiations are ongoing to achieve a fair price for producers and consumers. Manufacturers, for their part, plan to consolidate in the coming weeks. Otherwise, the future of the milk sector could be jeopardized according to the Vice President of the Milk Division at FDSEA 29: “We want youn Fair price of milk and sustainability of milk sector. Young people no longer settle down, some farmers stop production. We are seeing a decline in milk production locally and across France.”

Laurent Arzel with Catherine Aubeil.