France: A Major Player in the Global Dairy Industry

As a prominent force in the dairy sector, France plays a crucial role both within Europe and on a global scale. The country's robust dairy infrastructure, extensive cattle population, and renowned dairy products underscore its pivotal status in this industry.

Milk Production and Dairy Cattle

France is home to an impressive 3.8 million dairy cows, which contribute to an annual milk production of approximately 25 billion liters. This substantial output solidifies France's standing as a leading milk producer both continentally and globally.

Milk Processing and Key Enterprises

Annually, France processes around 23 billion liters of milk, transforming it into a diverse array of dairy products. Key enterprises like Danone and Lactalis play central roles in this process. Notably, Danone has recently announced a €70 million investment to enhance domestic production, particularly focusing on medical nutrition. Lactalis is also expanding its international presence, with recent acquisitions in Colombia and Southern Germany.

Cheese Production

Cheese production is a hallmark of French dairy, with approximately 1.9 million tonnes produced annually. This reflects both strong domestic consumption and a robust export market.

Milk Powder and Whey Production

France produces about 1.4 million tonnes of milk powder and whey each year, playing a crucial role in the global dairy supply chain.

List of Dairy Farms

• Ferme des Peupliers
• La Ferme du Sart
• Ferme de Viltain

Exports and Imports

France's dairy exports are valued at around €8 billion annually, with cheese being a significant export product. Conversely, the country imports approximately €3 billion worth of dairy products, predominantly from other European Union countries.

Recent Dairy Market Events

• Danone obtained approval to sell its Russian assets and announced a €70 million investment in domestic production enhancement.
• Lactalis expanded operations in Colombia and acquired BMI Dairy Assets in Germany.
• The EU anticipates a 0.4% growth in French milk deliveries by 2024.
• Raw milk prices in France have risen to 45.89 euro cents per kg.
• Ysco's facilities distribute up to 190 million liters of ice cream yearly in Belgium and France.
• Lactalis took over General Mills' US yogurt business.
• The World Dairy Summit in Paris highlighted sustainable dairy practices.
• Outbreaks of Bluetongue and EHD diseases have affected dairy operations in Northern France.
• The FNSEA announced protests against EU-Mercosur trade negotiations.
• Danone is mediating trade solutions between China and the EU concerning the EV sector and partnering with Maersk for sustainable shipping solutions.
• Lactalis plans a milk intake reduction by 450 million liters, representing nearly 9% of its total volume in France.
• Danone submitted proposals to acquire remaining shares of Lifeway Foods.

France remains a vital stakeholder in the global dairy industry, continuously adapting to domestic and international challenges. The Nutri-Score initiative and France's position as a leading exporter of whey underscore its influence. However, challenges arise from within the EU and beyond, including China's expanded anti-subsidy probe.

Despite these challenges, French dairy giants Danone and Lactalis are making strategic advances in the market. Danone's offer to acquire additional shares in Lifeway Foods and Lactalis' investments in Brazil highlight their ambitions. Meanwhile, farmgate prices in France are nearing record highs, reflecting complex dynamics within the global dairy landscape.

Regulatory efforts, such as France's attempt to restrict meat-related terms like "vegan sausage," face pushback, demonstrating ongoing debates over labeling and consumer transparency in the food industry. France remains a staunch critic of the EU-Mercosur trade agreement, with President Emmanuel Macron’s office labeling the deal "unacceptable."

The poultry feed sector is forecast to grow moderately by 1.3%, driven by a recovery in poultry production in key member states such as France. In Paris, pastry chef Arnaud Delmontel continues to craft croissants and pain au chocolat with traditional butter, despite a 25% price hike since September. France is dealing with outbreaks of BTV-3 and EHD that have affected milk yields. Danone plans to invest €100 million in operations in Mexico. French dairy giant Danone is preparing legal action against US-based kefir maker Lifeway Foods. YSCO operates facilities in Belgium and France.

The Normande breed, originating from Normandy, France, is ideal for cheese production due to its milk's rich content.

Modified: 2025/02/05

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