Lactalis and Unell Reach Agreement on Milk Price Formula for 2024
Source: The DairyNews
In a collaborative effort outlined in a joint press release issued this Thursday, Lactalis and Unell, the National Union of Lactalis Delivery Breeders, have announced a pivotal agreement regarding the pricing of milk for the remainder of 2024. This agreement also introduces a revamped formula for determining the price per ton of milk, signaling a significant development in the dairy industry landscape.
After extensive deliberations and a mediation process initiated on January 29, both parties have reached a consensus, marking a significant milestone for the dairy sector. The agreement primarily focuses on the domestic market within France, where Lactalis, a prominent player in the industry, will now procure milk from producers at an elevated price.
Yohan Serreau, President of UNELL, expressed satisfaction with the outcome, emphasizing the positive impact on breeders as the cost price per 1,000 liters increases from 460 euros in the previous formula to 475 euros under the new arrangement. Furthermore, the proportion of the cost price incorporated into the formula for the French market has surged from 50% to 70%, reflecting a more equitable distribution of returns.
The collaborative efforts between UNELL and Lactalis France have facilitated comprehensive discussions on the economic dynamics of the dairy sector, paving the way for a sustainable, long-term agreement. The newly devised formula for calculating milk prices will come into effect from May onwards, with Lactalis agreeing to purchase standard milk from producers at a mutually agreed-upon rate of 425 euros per 1,000 liters.
UNELL, representing a significant portion of farms contributing to Lactalis' milk processing operations in France, lauds the constructive engagement with Lactalis and anticipates smoother commercial negotiations in the upcoming winter sessions. This agreement underscores a commitment to fostering stability and prosperity within the dairy industry, benefitting stakeholders across the supply chain.
Yohan Serreau, President of UNELL, expressed satisfaction with the outcome, emphasizing the positive impact on breeders as the cost price per 1,000 liters increases from 460 euros in the previous formula to 475 euros under the new arrangement. Furthermore, the proportion of the cost price incorporated into the formula for the French market has surged from 50% to 70%, reflecting a more equitable distribution of returns.
The collaborative efforts between UNELL and Lactalis France have facilitated comprehensive discussions on the economic dynamics of the dairy sector, paving the way for a sustainable, long-term agreement. The newly devised formula for calculating milk prices will come into effect from May onwards, with Lactalis agreeing to purchase standard milk from producers at a mutually agreed-upon rate of 425 euros per 1,000 liters.
UNELL, representing a significant portion of farms contributing to Lactalis' milk processing operations in France, lauds the constructive engagement with Lactalis and anticipates smoother commercial negotiations in the upcoming winter sessions. This agreement underscores a commitment to fostering stability and prosperity within the dairy industry, benefitting stakeholders across the supply chain.
