France: A Powerhouse in the Global Dairy Industry

France is a major player in the global dairy sector, producing approximately 25 billion liters of milk each year. This substantial output is supported by a robust dairy cow population of around 3.8 million, underlining France's agricultural strength and dedication to dairy farming.

Milk Processing and Key Enterprises

The French milk processing infrastructure is extensive, handling about 23 billion liters of milk annually. Prominent companies such as Danone and Lactalis are crucial in this sector. Danone has invested €70 million to enhance its production capabilities, while Lactalis has expanded its global presence with acquisitions in the US, Portugal, Germany, and Colombia.

Cheese Production

France is globally renowned for its cheese, producing approximately 1.9 million tonnes annually. This solidifies its status in both domestic and export markets, reinforcing French cheese as a symbol of culinary excellence.

Milk Powder and Whey Production

The country produces around 1.4 million tonnes of milk powder and whey annually, supporting a range of industries within the dairy supply chain and bolstering strong export capabilities.

Exports and Imports

The French dairy industry excels in exports, valued at around €8 billion per year, with cheese being the leading product. Imports, primarily from EU countries, amount to approximately €3 billion. Notably, France was the top ice cream supplier to China, with exports valued at $5.1 million by the end of July.

Recent Dairy Market Events

Danone received approval to sell its Russian assets, refocusing on domestic growth. Lactalis expanded its reach to Colombia and acquired assets in Germany. The EU projects a 0.4% increase in French milk deliveries by 2024, driven by rising raw milk prices. Challenges such as Bluetongue and EHD outbreaks affected Northern French dairy operations. The French National Federation of Agricultural Holders' Unions (FNSEA) organized protests regarding EU-Mercosur trade talks. Danone enhances trade between China and the EU, collaborating with Maersk for sustainable shipping. Lactalis plans to reduce milk intake in France by 450 million liters in response to market changes. Lactalis purchased Fonterra's consumer brands for $3.845 billion NZD.

Innovation and Contracts

French dairy enterprises continue to innovate, implementing written contracts with fixed prices and participating in tripartite contract pilot projects involving farmers, processors, and retailers.

Historical Insights

The first ice cream parlour is traced back to 17th-century France, with Café Procope in Paris introducing gelato to the French public in 1686.

Upcoming Events

SPACE 2025 will be held at the Rennes Exhibition Centre, drawing exhibitors and visitors worldwide. Danone continues its expansion efforts, focusing on sustainable yogurt production and enhancing its supply chain with eco-friendly practices.

Challenges and Opportunities

French health authorities have announced a mass recall of several types of cheese due to listeriosis concerns. The affected cheeses include French-origin Camembert du Caractère Vieux Porche and Brie Royal Faucon. France is also concerned about potential duties impacting its dairy exports to China, valued at approximately €650 million annually. Europe benefits from strict quality regulations and a consumer preference for organic dairy products. Danone plans to shut down its Blédina infant-cereal production facility in Villefranche-sur-Saône, affecting 117 employees. The plant is responsible for producing Blédine and Phosphatine brands, primarily distributed in Europe and Africa. The decision to close stems from a decade-long decline in activity within a challenging market environment.

French milk prices are higher than those in Australia, with the average price for milk in France at $2.44 per litre. Lactalis plans to cut its French milk processing by 450 million litres by 2030, representing a 9% reduction aimed at shifting focus from bulk commodities to higher-margin products like cheese and yogurt.

Fonterra has sold its Mainland and Anchor brands to French dairy company Lactalis. The sale involves Fonterra's global consumer brands being acquired by Lactalis. French business leaders are exploring investment opportunities in Mexico's dairy sector. The French delegation, in partnership with the French Chamber of Commerce and Industry in Mexico, is focusing on identifying investment niches, joint ventures, and technology transfers to enhance efficiency and competitiveness in Mexico's food production and processing.

The Fi Europe event will take place in Paris, France, marking its 30th anniversary as a significant platform for showcasing innovations in the food ingredients sector. Danone, a French dairy giant, has unveiled plans for a substantial investment in its operations in Canada. A French startup is set to revolutionize the dairy industry by producing animal-free casein, aiming to introduce this innovative product to the European market by 2027.

France is one of the main suppliers of dairy products to Kazakhstan, which imports virtually all categories of dairy products, with France being a significant supplier.

Legal Issues

Lactalis is embroiled in a legal dispute in France over allegations of underpaying employee profit bonuses. The case involves over 500 employees and is filed with France's Parquet National Financier.

Consumers are seeking specialized cheese varieties from France. France is recognized for its specialized cheese varieties, appealing to consumers interested in global flavor exploration.

At the Methane Connect event in Paris, a digital tool was showcased to model a herd's lifecycle, offering farmers a more transparent understanding of emissions data.

Modified: 2025/12/13

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