News The Covid-19 puts the price of milk under voltage

The Covid-19 puts the price of milk under voltage

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Lactalis fights a lower price

When he looks in the back of the first half, Lactalis did not see a decrease in the price of milk paid to producers. But, on the contrary, a “slight increase “compared to the same period last year. “Increase in the first quarter, stability in April and may, and single decline in June. In the smoothed average, the price practiced by the group is higher than the price of the main companies with the same range of products, such as Sodiaal, Eurial and even Danone “, summarizes the group’s head office, in Laval. This is the stallin June, of € 12 per tonne of milk in ulcer the Organization of milk producers Lactalis of the great West (1 300 producers, 700 million litres of milk). And that leads him to refer to the ombudsman of the business relationship for non-compliance of the law Power. It is necessary to cool down the debate , defuses Michel Nallet, the spokesman for the dairy group. The global prices of ingredients go up. Our sales have picked up in China. There is no desire of the group to lower the price of the milk. We are working for a positive year. “

The dairy surplus

The milk collection was maintained during the health crisis. But “the surplus has weighed on prices of industrial products (butter and powder) that have registered , for eight weeks, a decrease of 100 € per ton of, recalls Alain The Boulanger, of the FNIL (dairy industry). However, the industrial products and the export market also decline, represents 50 % of the product mix in France” (which serves as the formula for the price of the milk). The products of great consumption (PGC), the other 50 % of the product mix, were fortunately cushioned the decline, because they take into account the costs of production of farmers. “

“A lack of transparency “

The organisations of producers (OP) milk challenge this presentation. According to France Milk Board (FMB), “the market for consumer products France (milk, cheese, yoghurts etc) has increased 50 % in volume and value. The products for export are maintained. Only, the ooh (RHF) has fallen in the first weeks of the containment, but it represents only 5 % of the sales mix of the dairy industry in France […] The producers would pay the additional cost of the transformation due to the Covid-19 ? ” Sophie Lenaerts, president of the organization of milk producers (OPL) of the Coordination rural, denounces a lack of transparency in the fixing the price of milk “.

The pressure from the ombudsman

Seized by France OP Milk, which brings together 18 organisations of producers (6 200 producers, 2.7 billion litres of milk), the mediator of commercial relations recalled that the framework agreements are still outstanding “will have to be concluded before 1er December and the beginning of the next trade negotiations (with the distribution). Failing that, sanctions may be requested from the ministry of Economy. The price formula must take into account the indicators of cost of the milk. The Cniel has set to 384 €/t. “This consideration is not yet evident for all of the industrial “says Loïc Adam, vice-president of France OP milk.

Reduced production in 22 000 farms

Implemented by the Cniel (dairy) in April, the device voluntary reduction of milk production has been operated by 22 000 dairy farms with 40 % of them. In total, 48 million litres of milk have not been produced, which has cushioned the traditional spring peak of milk production (+64 million liters full containment health. The Cniel has put 15,28€ million to compensate these efforts (320 €/t). The envelope initially provided for was ten million. Brussels had also unblocked 30 million euros to finance private storage of dairy products to absorb any surpluses.

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