The FNPL, a French agricultural union, responded to Savencia's decision to "end its commercial relations" with the OP Les 3 Rivières, a cooperative involved in dairy production, following the conclusion of the Livestock Summit press conference on October 6. The summit focused on several pressing issues, including drought, national solidarity compensation, and milk prices. Éric Richard, president of Criel Alpes-Massif and a representative of FDSEA, highlighted that one year after the crisis caused by contagious nodular dermatitis (DNC), the sector is now facing a new challenge due to drought. This has severely impacted grassland systems, which are crucial for grazing animals, while rising costs and unprofitable milk prices have made the situation even more difficult. Richard noted that the reduction in herd sizes, already a trend, is accelerating, and the growth of late-season grass is being strongly affected by the lack of rainfall.
Yoann Barbe, president of the union, emphasized the need for financial support to compensate for losses in forage production, under the national solidarity compensation (ISN) mechanism. The ISN was created to replace the agricultural disaster mechanism and evaluates yield losses since spring, estimating them to be between 30 and 40 percent. However, losses on dairy farms can be as high as 50 to 60 percent. The ISN provides compensation for farmers who are not insured, with a 30 percent deductible, calculated using satellite data to measure changes in grass growth. Barbe mentioned that the union has been asking for additional field expertise on reference farms in small agricultural regions since this summer, but without success. He urged the government to strengthen the ISN in the 2027 finance bill, similar to the budget planned last year to support dairy farmers affected by the DNC.
Stéphane Joandel, general secretary of the FNPL, said that a strong signal is needed from private and cooperative industry players to help farmers survive until next spring. With the 2025 cost price for milk set at 482 euros by the interprofessional sector and an estimated increase of 60 euros by the Institute of Livestock, there is a significant gap in funding. The FNPL will soon comment on Savencia's decision to end its commercial relations with the OP Les 3 Rivières, questioning the limits of a system where an industrial company can terminate a contractual relationship whenever it sees fit or when negotiations do not meet its expectations. The union also raised concerns about whether cooperatives are meant to systematically take over the volumes that some private operators no longer want.
French Dairy Industry Faces New Challenges Amid Drought and Contract Disputes
AI-rewritten from original reportingHow it works
droughtdairy-farmingmilk-pricesisn-compensationfnplagricultural-crisis
Original sources:
- 🇫🇷Web-agri



