Le Monde | • Updated | By
” Lactel ruin farmers. “ Since the beginning of summer, this slogan comes in many forms: painted on sheets of hay bales in fields, along roads in the west of France, registered with a banner pulled by a plane flying over the beaches of Normandy, in supermarkets affixed as stickers by farmers or using hashtag on Twitter.
the warning shows the anger of the milk producers face Lactalis . The world number one industry, known for its brands like Lactel, Bridel or president, is accused of being the deadbeat milk in France and weaken a bit more a struggling industry, affected by falling prices and overproduction. To be heard, all breeders of Pays de la Loire, Brittany and Normandy were called to manifest, Monday, August 22, at the headquarters of the company in Laval, Mayenne.
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“This action is planned for an indefinite period because we want to resume negotiations and reach an agreement” on better milk prices, said at the announcement of this event on August 12, Philippe Jehan, the President of the departmental Federation of farmers’ unions (FDSEA) Mayenne.
“disaster”
the challenge is to the 257 euros per 1 000 liters that pays the group to breeders or from 10 to 30 euros less than its competitors (Bongrain, Sodiaal, Bel, Danone or industry SMEs). Now, says Jeremy Trémeau, President of the Young Farmers of Mayenne, in this department “The production cost is 386 euros per 1 000 liters of milk, including a salary of a minimum wage and a half – which , for the work is not enormous. ”
Two years ago that the situation in Europe has deteriorated, with the end of milk quotas in 1 st in April 2015, the brake on Chinese imports and the Russian embargo, decreed mid-2014. This created a situation of oversupply, as domestic demand has not increased
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After reaching 365 euros per tonne in 2014, milk prices fell to 305 euros in 2015, before falling around 275 euros today – while, as recalled Thierry Roquefeuil, the president of the national Federation milk producers (NPFL), production costs are estimated at 350 euros in France. “A disaster for many producers, especially for young people,” he says. In fact, the rate of cessation of activity in the 60 000 French farms, which employ 110 000 farmers, is expected to double this year to be around 9%. Now, says Mr. Roquefeuil, “a dairy farmer produces six to seven jobs” (the driver who comes to collect the milk veterinarian).
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the key under the door
“It sinks slowly,” regrets Max Vié, president of the Organization of producers Normandy Centre, highlighting the low morale of farmers before the collapse of prices:
“Some are borrowing to short term to fill holes. A lot of farmers stopped or plan to do so. “
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Marc-Antoine Blot, the department manager Young dairy farmers for the Channel, confirming the financial difficulties of farmers: “in my operation, we are two and our joint work outdoors, this is what allows us to get there. The breeders at a loss for too long. “ and a producer of the Orne, contacted by Le Monde that says ” yet not a small “ with 400,000 liters produced annually , anticipates a turnover decline of 30 000 at the end of 2016 and plans to put the key under the door, in a year, “if prices do not go back.”
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for the second consecutive year, the anger is focused on Lactalis. In July 2015, industry leader it, collecting more than 20% of French milk from 17,000 farmers, the vast majority in the Great West, had seen his seat blocked by a thousand demonstrators and 500 tractors.
“the market reality”
“Basically, milk is paid 10% less that [2015] , which had also recorded a 10% decline, “ evaluates Dominique Barrau, general secretary of the national Federation of farmers’ unions (FNSEA). For him, the approach encourages Lactalis “other industry to bring prices down and pay less than they could.”
“All our industrial not only Lactalis, are making record profits in the first quarter, “ says Mr. Trémeau, who believes these also involved in the demonstration on 22 August. “But if Lactalis does not move, the other will not budge,” he deems
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“as a number, it could be among producers and help them,” insists Mr. Roquefeuil who wants a revaluation of prices. For the head of the NPFL, “This is the illustration of liberal politics: it is to buy the cheapest possible and to gain market share,” This will do. promotions in supermarkets:
“When you buy six packs of milk for the price of three, is on the back of the producer. The consumer should be aware, he insists. We are destroying a profession. “
Lactalis refutes all these criticisms. In response to a letter sent on 4 August by Xavier Beulin, head of the FNSEA, Emmanuel Besnier, Lactalis CEO, who asked him a meeting to break the deadlock, the group recalled that it does not negotiate price with unions. The discussions are with its network of producers with whom the dialogue has never been broken.
500 million euros of aid
More “can not both propose to get around a table and be on a war footing by organizing events,” says Michel Nalet, director of communication. “It is only in France that the agricultural trade unionism rejects the reality of the market and is attacking a particular company, with an irresponsible speech that the Lactalis group has denounced and strongly condemned” writes the dairy giant in a statement released on 18 August. Deploring what “denigration against-productive” , Lactalis asks:
“Which model wants FNSEA and the NPFL? A dairy market outside France with a sharp reduction in volumes and the number of producers or agriculture trying to stay among the European leaders? “
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Lactalis, recalling that this crisis is “above all a crisis of overproduction” also stressed that France is the country where the price of milk is highest, higher by about 15% to 20% to those of major competitors such as Germany, the Netherlands and Ireland. Moreover, to stop this overproduction, the European Commission endorsed a French proposal, deciding in July to spend 500 million euros to help farmers reduce volumes. A council of agriculture ministers is scheduled on Thursday 25 August in Brussels to define the implementing procedures.
Dates
March 31, 2015
End of milk quotas in Europe, resulting in increased production. After a historically good year 2014, milk prices plummet early 2015, died of a decline in world milk powder course, butter and cheddar.
24 July 2015
following the events of the breeders, the industry, under the auspices of the Minister of agriculture, decided to increase the purchase price until December 2015 not to fall under 340 EUR 1 000 liters.
18 July 2016
Brussels decided to release EUR 500 million of emergency aid, to curb downward spiral of prices and encourage producers to reduce their volumes.
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