Prolek Seeks New Partnerships as Lactalis Ends Longstanding Contract

Farmers associated with the Prolek cooperative in Luxembourg face a significant transition as Lactalis, a French dairy giant, has announced it will not renew its contract with the cooperative. The contract, which will end in April next year, leaves around 70 producers in need of a new buyer for their milk.

Vic Wirtz, the president of Prolek, expressed the shock and disappointment felt by the farmers. Operating as sixth-generation farmers, Wirtz and his brother manage 300 dairy cows and are keen on finding solutions not just for themselves but for all cooperative members. The cooperative consists of 68 family-run businesses of varying sizes and capacities.

Prolek produces approximately 50 million litres of milk annually, which accounts for 10% to 15% of Luxembourg's dairy production. In response to Lactalis's decision, Prolek has initiated discussions with Luxlait, Muh-Arla, and Hochwald, the main players in the country's dairy industry.

Luxlait's director, Gilles Gérard, noted that absorbing such volumes requires thorough analysis and potential capacity expansion. He emphasized Luxlait's role in the Luxembourg dairy sector and indicated that strategic expansion has always been under consideration, even if it demands significant investment.

The Ministry of Agriculture and other sector stakeholders have shown support for Prolek, with crisis meetings scheduled to address the situation. The cooperative is determined to ensure that no member is left behind during this transition.

For its part, Lactalis cited challenging economic conditions in the global dairy market as a reason for not renewing the contract. The company has pledged to assist farmers during the transitional period and collaborate with local partners.

The Centrale Paysanne expressed profound disappointment at the decision, emphasizing the heavy investments made by the affected businesses and criticizing the prioritization of cheaper milk imports over local production.