At the Livestock Summit on October 8, François-Xavier Huard, CEO of the Fnil, reiterated the stance of the National Federation of the Dairy Industry on producers' calls for higher prices. Commercial talks for national dairy brands are scheduled to start in December, and Huard emphasized that all French dairy products must be negotiated within France. He said the sector is waiting for a commitment from the retail sector to ensure that the value created by regional producers stays within the country, using the Triballat Rians dairy as an example.
Huard expressed surprise at a recent statement from the Federation of Commerce and Distribution about transparency in the industry. He noted that dairy producers are seeking price increases, but these, he said, can only be achieved if distributors agree to commit to agricultural and industrial raw materials in future negotiations. Increases in manufacturing costs, including packaging and energy, are reported to be around 20% and 15 to 30%, respectively. Huard mentioned that the government has refused to restart negotiations for several months, leading to a tense economic situation for manufacturers and livestock farming.
Huard suggested that the retail sector should share the increased costs across different product categories, noting that price increases may not necessarily reach consumers. He warned that consumers might turn to the cheapest options and store brands, with the "Made in France" label playing a role, as seen during previous inflation peaks. He also expressed concern about a possible tax on sweet products, including dairy and natural sugars, noting that France would become the first country to tax lactose.
Regarding the relationship with producers, Huard described it as "demanding, but not bad at the moment," highlighting that the drought and its effects have made this year's interactions between producers, manufacturers, and distributors more difficult. He noted that global demand for milk and dairy products has not decreased and questioned whether France can maintain its position in the global market. Huard dismissed proposals to set up lookouts and barbed wire on French territory, arguing that such measures would favor imports and that France must remain a production economy rather than a consumption economy.
French Dairy Industry Negotiations and Price Hikes Under Scrutiny
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