Lactalis, Europe’s largest dairy group by sales, is under pressure from French farmers to increase the price it pays for milk, having been accused of taking advantage of producers already hit by an oversupply of milk on the world market, reports The Financial Times.
The group’s headquarters in Laval, a town in western France, was picketed by two of the country’s most powerful farmers unions on Monday.
The unions said that Lactalis, which owns brands such as Président butter and Rachel’s Organic, pays 257 euros per 1,000 litres of milk, which is up to 30 euros less than competitors and the lowest price since 2009.
Lactalis, which was started in 1933 by André Besnier and still family-owned, said on Monday that it was willing to discuss prices with the unions. “We understand the difficulties for [milk] producers today,” said Lactalis.
But the company added it had already been generous with French farmers, paying 75 million euros more that it could have for its milk since 2015 by not renegotiating contracts in line with lower market prices.
He said the company had to compete with rivals in other European countries that were paying less for milk. “Just because the group is doing well, does not mean we can ignore the realities of the market,” said Mr Nalet.
“This simply cannot continue,” said Yohann, a dairy farmer, talking to Europe 1 radio. “We are losing money every day . . . Farmers are in such a terrible situation, we feel that we have nothing left to lose any more.”