In conflict with producers, Savencia proposes to maintain milk collection beyond contracts

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The Savencia group proposes “to maintain milk collection from Sunlait producers who wish to do so” from November 1, while the contracts binding the cheesemaker to the producers' association will have expired without an agreement between the two parties. 

“From November 1, Savencia proposes to continue collecting from Sunlait producers who wish to do so, without impacting the volumes of the French dairy industry,” announced the French group in a press release on Monday, which produces the Cœur de lion, St Môret, Tartare and Caprice des dieux cheeses. 

In conflict over the price of milk with the producers' organization association (PDO) Sunlait, deemed too greedy by Savencia in light of market conditions, the cheesemaker had terminated the contract binding it to the PDO. 

The collection contracts, which were due to expire on March 8, were extended for the first time until October 31: a decision imposed on the parties by the Agricultural Trade Dispute Settlement Committee (CRDCA), a body created by the Egalim 2 law and seized by Sunlait. 

The price for 1,000 liters of milk is 420 euros, according to Ouest'lait, one of the producers' associations, which is hoping for a minimum of 450 euros. 

While no agreement could be reached between the two parties, Savencia is proposing a “transitional” solution, “in order to allow producers the time they need to choose the solution that suits them.” 

The group promises “that no producer will be left by the wayside”, while the global giant Lactalis warned at the end of September that it would be offloading the collection of around 450 million litres of milk in France, with around 300 first farms affected in Vendée and in the East. 

“This proposed operation is nothing other than a circumvention of Sunlait” and its member producer organisations, denounces Sunlait in a press release, according to which Savencia “refuses any proposal from Sunlait and does not allow a solution to be found”. 

“Although to date there is no agreement”, Sunlait and its members “are continuing their efforts to find a solution allowing relations to continue”, adds the press release. 

Savencia Cheese & Dairy is the 2nd largest French cheese group, with 5.1 billion liters of milk processed, and a turnover of 6.79 billion euros in 2023. 

 

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