Luxembourg's Dairy Sector Faces Challenges as EKABE Ceases Local Milk Sourcing
EKABE, a dairy company owned by the French group Lactalis, has announced it will cease sourcing milk from Luxembourgish farmers starting April 1, 2024. This decision impacts nearly 70 farms in Luxembourg, prompting discussions on the future of the country's dairy sector. A meeting at the Ministry of Agriculture is scheduled to address the situation.
Marco Koeune, president of the Baueren-Allianz, expressed skepticism about reversing Lactalis's decision but suggested negotiating a longer transition period to provide farmers with time to switch suppliers. Potential alternatives include Luxlait or dairies in neighboring countries, such as Arla or Hochwald.
Arla recently merged with DMK Groupe, forming an entity with a milk pool of 19.4 billion kilograms and annual revenue exceeding €20 billion. Lactalis, in contrast, employs 85,000 people worldwide with a turnover of over €31 billion annually.
Koeune emphasized the need for Luxembourgish companies to focus on quality rather than quantity, citing significant investments in quality programs for meat and milk. He also mentioned the importance of consumer involvement in purchasing products from supermarket shelves.
Regarding a proposed boycott of EKABE products, Koeune advised caution, noting the uncertain impact and potential difficulties in mobilizing public support. He referenced a past protest in Diekirch in 2012 against a brewery closure, questioning whether a similar movement would be effective now.
The Luxembourgish Agriculture Minister, Martine Hansen, revealed that EKABE processes 54 million kilos of milk annually from local producers, accounting for 10% to 15% of the country's milk output. The Eschweiler site also processes 40 million kilos of foreign milk. Despite the upcoming cessation of local milk processing, the plant will continue operations.
Lactalis has not disclosed where it will source milk for EKABE products next year but mentioned evaluating options to support affected farmers and analyzing the processing capacity of the Luxembourgish market.
