Categories: Business

Lactalis further reduces its collection of French milk, to the great displeasure of producers

AFP/Archives – DAMIEN MEYER

It's ugly… The giant Lactalis announced at the end of September a 9% reduction in its milk collection in France by 2030, hitting 800 dairy producers hard. Behind this decision, a barely concealed desire to maintain its dominance of the world market, which has serious social and economic consequences for French agriculture.

Lactalis, already the world leader in dairy products, has decided to cut its collection in France: some 450 million liters of milk will no longer be purchased from French producers each year. And for the latter, the news is a betrayal: “They told us to trust them… and today, they're abandoning us,” laments Jérôme Bossard, a milk producer in Vendée, to RMC. But beyond the individual tragedies, this decision raises burning questions about the place of French agriculture in a global market which, by definition, does not include local producers.

For the farmers concerned, the announcement is a real “bolt from the blue”, according to Yohann Barbe, president of the National Federation of Milk Producers (FNPL). Collateral victims of a strategy aimed at reducing exported milk surpluses, more than 800 producers could see their incomes melt away. While Lactalis justifies itself by the volatility of international markets and a desire to refocus on mass-market dairy products, this decision appears above all to be a withdrawal from the rural areas where these farms are located. And this, despite the fact that Lactalis factories will continue to operate at full capacity.

“Will Lactalis compensate for this drop in collection by importing foreign milk ?”, predicts Yohann Barbe, fearing that the reduction in purchases is just a facade. As in many other economic sectors, this scenario could result in a predominantly industrial production, where local farms no longer have a place. If this is the case, the large production regions of Brittany and Normandy may be spared in the short term, but will have to quickly change their approach…

“In my sector, there are 94 of us who have been ousted from Lactalis. What are we going to do ?” wonders Jérôme Bossard. Contrary to what the FNPL hoped, Lactalis has not offered any satisfactory alternative solution to the farmers whose contracts are ending. They have no choice but to find other buyers, otherwise they risk having to stop their activity. A real pain when you know that some have just invested in expensive new equipment to improve the quality of their production. Especially since Lactalis' announcement comes at a time when many farmers are already struggling to keep their farms afloat. 

The cessation of collection could mean the end of a profession that has been passed down for generations. And if the industrialist talks about working “upstream” with producers to support them, these promises ring hollow for many of them, who find themselves caught off guard, after having been encouraged to produce more and more.

This decision is the result of a market logic that goes far beyond French borders. Lactalis, like other giants in the sector, is facing fierce global competition, and fluctuations in milk prices are forcing this big cow to review its supply strategy. By reducing its volumes, the group hopes to make better use of the remaining milk, particularly for the manufacture of processed products, such as yogurts or cheese, which sell better on national markets.

In other words, French farmers are being sacrificed on the altar of global profitability. While the global market justifies this reorganization for Lactalis, it is different for small French farms, which are struggling to adapt to these increasingly brutal production cycles. For Laurence Marandola, spokesperson for the Confédération paysanne interviewed by France 3, “Lactalis is the world number one in milk that is not capable of paying its producers correctly.”

Far from being a simple dairy issue, this crisis reflects the deep contradictions of an agro-industrial model that prioritizes short-term profits, while weakening the sustainability of local farms. Behind the strategic decisions of multinationals, it is an entire local agriculture that risks disappearing, in France as elsewhere. And it is not the French government that is going to correct the situation. Although the Minister of Agriculture, Annie Genevard, was quick to meet with representatives of milk producers, her words are struggling to convince on the ground.

The remaining solution is the citizen boycott, which many Internet users are calling for to put pressure on the group.

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Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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