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Lactalis will raise prices paid to French milk suppliers

Staff Writer |
Lactalis, the world's largest dairy firm, reached a deal with French milk producers to raise prices paid to suppliers and farmers called off their week-long protests, the company and unions said.

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Lactalis agreed to pay an average 275 euros ($307) per 1,000 litres of milk for the whole of 2016, Dominique Barrau, secretary general of France's largest farm union FNSEA which represents 20,000 local agricultural unions and 22 regional federations, told Reuters.

"It brings Lactalis to the level of its competitors," Barrau said, adding that the union had called for an end to protests.

The offer was 10 euros higher than an initial proposal before the first talks on Thursday last week, but still well below production costs pegged at about 330 to 380 euros per 1,000 litres depending on the size of the farm, unions said.

Lactalis, which produces cheese, milk, butter and yoghurt with brands including President, Bridel, Galbani and Lactel, confirmed the agreement without giving any details.

French Prime Minister Manuel Valls called the deal a positive agreement on Twitter.

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