Two French dairy co-operatives, Glac and Eurial, have agreed to merge, a deal that could create the country’s second-largest dairy co-op.
The merger, which remains subject to regulatory approval but which the two sides hope will go live within the next 18 months, will form a company behind only Sodiaal among French co-ops.
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The new group will have an annual output of 1.6bn litres of cow’s milk and 300m litres of goat’s milk, generate a turnover of EUR1.3bn and employ over 2,600 staff.
“The merger is aimed principally at providing a long-term economic future to one of France’s major milk-producing regions (encompassing mid-western and western France, southern Brittany and Auvergne) at a time when the industry as a whole – producers and dairy groups – are confronted with the effects of deregulation and the fluctuation of world markets,” a statement by the two sides read.
Combined, the new group will operate over 20 processing plants specialising in cow’s and goat’s cheese, consumer milk, butter, cream and milk ingredients.
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By GlobalData
