Milk collection decline accelerates

Eurial bio, a major player in organic dairy production, is seeing a faster-than-expected drop in milk collection. This decline is partly due to severe drought conditions affecting farming areas, which have made it harder for farmers to maintain their usual output.

Organic milk collection drops significantly

National organic milk collection fell by 12.8% between 2022 and 2025, and by an additional 3.85% in the first eight months of 2026 compared to the same period in 2025. This marks the first year of decline for Eurial bio, which had previously seen steady growth in milk collection.

Fewer farms in the organic sector

The number of dairy farms in the organic branch of the Agrial group has decreased from 330 in 2025 to 310 in 2026. This decline is attributed to the suspension of conversions to organic production since 2021, the return of some farmers to conventional methods, and the closure of some businesses.

Drought impacts production estimates

Bruno Martel, president of Eurial bio, initially projected milk production of 118 to 119 million liters in 2026, down from 129 million liters in 2025. However, due to the drought, the estimated production is now 117 million liters, a decrease of -9% to -10%.

Farmers adapt to drought conditions

Despite the drought, production from members over the last twelve months did not decline. Strong deliveries in the spring helped offset summer challenges. Farmers continued to support cow lactation to benefit from a base price of 560 € to 570 € per 1,000 liters in the third quarter of 2026.

Drought reduces milk output per farm

The cooperative estimates that the drought will reduce average milk output by 15,000 liters per farm in 2026, totaling 375,000 liters, compared to 390,000 liters in 2025. Bruno Martel mentioned that Eurial bio is maintaining a 10 € per 1,000 liters premium for 100% French origin feed, despite some organic products now having European or conventional origins.

Base prices for organic milk remain stable

The organic sector has set base prices for the rest of the year, with 560 € in October and 550 € in November and December. The average base price for 2026 is expected to rise to 520.91 €, including a tank premium, up from 547.02 € in 2025.

Eurial bio continues its strategic focus

Eurial bio plans to freeze conversions to organic production in 2027 to limit the downgrading of fats and proteins to conventional production. The company is also segmenting its product lines, such as the Agri-Éthique certification for industrial butters, and launching new products like skyr and repackaged yogurt pots under the Les 300 Laitiers bio brand.