The real reasons for the dairy crisis – Challenges.fr

Lactalis made a move for 15 euros, is that enough to calm the dairy crisis?

From the point of view of producers, it is still too tight. The average breakeven dairy farms in France is about 350 euros per ton of milk. The proposed Lactalis fixed at 271 euros per tonne, still missing a few euros although in the great west, privileged area of ​​collection Lactalis profitability rather turn to 300 euros per tonne.

Lactalis is it the worst payer in France?

Lactalis advantage of market conditions that are very favorable to him and especially during the fall of stepped milk since the end of milk quotas in April 2015. Lactalis is among the defaulters. For comparison, the Sodial group pays 90 euros per tonne more than Lactalis.

Lactalis does he not act as a side group?

This is the paradox of Lactalis. This global giant is owned by a family, does not publish its accounts but comes with a very industrial logic, development and investment which could be likened to that of a financial group. It does however not overlook the cheese industry requires a lot of investment and a portion of funds the margins.

Lactalis could happen of its French stores?

His collection sites are still predominantly in France. The proximity of the collection is essential for processing into fresh dairy products (milk, yogurt, cheese) which requires rapid intervention but Lactalis is less concerned since the group mainly produces cheese. It might therefore supplies elsewhere, it is already partly no doubt. There are already in France as the Gironde departments where no more transformer fault collects milk from farms in sufficient numbers.

The law Sapin 2 which will force him to make public accounts agribusiness she will change the situation?

certainly. We actually see that all agricultural sectors in difficulty have no clear picture on the distribution of the values ​​of marketed products. The dairy industry considers today as a brick of milk sold at 76 cents, there would be 32 cents for industrial, 27 cents to the producer, the distributor 10 cents and the rest in VAT.

This is not the first dairy crisis, how to explain that producers are slow to organize to deal with industrial and retail?

The response from producers can not actually being collective. Many dairy farmers’ cooperative as Isigny or Sodial have proven their effectiveness: the producer is in charge and managed to better monetization of its milk. The necessary consolidation of agricultural strengths is undoubtedly the weight of tradition and ingrained habits of solitary work. There is probably also a real lack of agricultural leadership. Producers play the card in case of collective crisis, helped by their union FNSEA could also fear that its influence is reduced in case of pooling forces.

Should -it not as producers more play the quality card?

the end of milk quotas has led farmers to overproduce. Banks also encourage producers to create ever larger farms. Yet organic milk is significantly better values ​​than the standard product with price of around 400 euros per tonne. Another interesting line: margin of insurance. It entered into force in the US a year ago. The producer contributes to guarantee a floor price. The French Government looks at the subject carefully.