Lactalis Leerdammer to Enhance Transparency in Milk Pricing for Dutch Dairy Farmers

The ACM ruling came after a complaint from a supplier association representing Dutch dairy farmers, which raised concerns about Lactalis Leerdammer's unilateral changes to milk pricing without prior agreements. The authority concluded that the cheese producer had breached regulations by informing farmers of their milk price each month without detailing how it was calculated.

Given that many farmers exclusively supply Lactalis Leerdammer, they had little choice but to accept the prices set. ACM has now mandated that Lactalis Leerdammer align its supply agreements with the Dutch Act by implementing a transparent pricing system within three months. Failure to comply could result in penalty payments of up to €1,050,000.

Jan Verbessem, general manager of Royal Lactalis Leerdammer, emphasized the importance of open cooperation with Dutch dairy farmers, acknowledging that the milk from these suppliers is crucial to the quality of the company's globally sold cheeses. While Lactalis Leerdammer plans to begin discussions with representative dairy farmers in October, the company has requested more time beyond the three-month deadline to develop the new supply agreement.

In addition, Lactalis Leerdammer is pursuing legal action to contest ACM's decision related to the supply law.