Lactalis Faces €74,145 Fine in Italy Over Dairy Code Violations
Source: The DairyNews
France-based dairy giant Lactalis has been slapped with a €74,145 ($80,446) fine by Italy’s Central Inspectorate of Quality Protection and Fraud Repression (ICQRF) for alleged "unfair" trading practices. The penalty, imposed on Lactalis' local subsidiary Italatte, follows a complaint filed by Coldiretti, Italy's primary farmers’ association, which accused the company of engaging in "unfair practices" related to the pricing of milk supplied by farmers.
In response to the fine, Lactalis, a major player in Italy’s dairy sector, expressed its intention to appeal any sanctions imposed. The company claimed that proposed contractual changes in 2023 resulted in farmers earning €40 million, over 10% more than initially agreed, with a price in line with the market. However, ICQRF contested this, stating that Lactalis had unilaterally modified contracts, reducing recognized prices, and introduced an index linked to European milk prices without agreement, disadvantaging Italian producers.
Giovanni Pomella, CEO of Lactalis in Italy, emphasized the importance of a sustainable milk pricing model for the entire supply chain. He expressed a desire for collaborative dialogue with industry stakeholders to protect the entire supply chain through a milk-saving campaign.
Coldiretti President Ettore Prandini asserted that Lactalis violated a government rule from 2021, which prevents prices paid to farmers from falling below production costs. Prandini urged Lactalis to pay the difference to affected farmers and emphasized the need for compliance with laws against unfair practices.
Lactalis, a major player in Italy’s dairy market with acquisitions such as Invernizzi, Galbani, Parmalat, and Nuova Castelli, has faced legal challenges before. In 2022, an Australian court ruled against the company for breaches of the country’s dairy code. In 2021, Lactalis faced scrutiny in France for safety and environmental governance violations. Recently, the company came under investigation for potential tax fraud in its home market.
As the legal battle unfolds, the dairy giant's commitment to collaboration and sustainability is juxtaposed against allegations of unfair practices, adding another chapter to Lactalis' history of legal entanglements.
Giovanni Pomella, CEO of Lactalis in Italy, emphasized the importance of a sustainable milk pricing model for the entire supply chain. He expressed a desire for collaborative dialogue with industry stakeholders to protect the entire supply chain through a milk-saving campaign.
Coldiretti President Ettore Prandini asserted that Lactalis violated a government rule from 2021, which prevents prices paid to farmers from falling below production costs. Prandini urged Lactalis to pay the difference to affected farmers and emphasized the need for compliance with laws against unfair practices.
Lactalis, a major player in Italy’s dairy market with acquisitions such as Invernizzi, Galbani, Parmalat, and Nuova Castelli, has faced legal challenges before. In 2022, an Australian court ruled against the company for breaches of the country’s dairy code. In 2021, Lactalis faced scrutiny in France for safety and environmental governance violations. Recently, the company came under investigation for potential tax fraud in its home market.
As the legal battle unfolds, the dairy giant's commitment to collaboration and sustainability is juxtaposed against allegations of unfair practices, adding another chapter to Lactalis' history of legal entanglements.
