Lactalis to Cut Milk Processing in France by 9%

The reduction, which will take effect progressively through 2030, is designed to limit Lactalis' processing of surplus milk sold abroad as bulk commodities like milk powder. The company says this shift will allow for a stronger focus on consumer products, such as cheese and yogurt, leading to better farmgate prices for farmers. "The valuation of surplus milk is often very low and subject to the volatility of world markets," said Serge Moly, Lactalis' supply director.

However, the French National Dairy Farmers' Union (FNPL) criticized the move, calling it a "withdrawal from the French dairy sector." Farmers' union leader Arnaud Rousseau expressed concerns about the future of milk collection for producers, as France continues to face challenges in its livestock sector, exacerbated by delayed support measures from the government.

Lactalis’ decision comes amid global market pressures, including declining demand from China and increasing competition from countries like New Zealand. The situation has been complicated by China’s anti-subsidy probe into EU dairy products, part of the country’s response to proposed EU tariffs on Chinese electric vehicles.

Discussions with French dairy producers are expected as the company moves forward with its plans.