Entremont Alliance has agreed to increase the price paid to producers for milk supplies the French group received in October.
Amid claims that the dairy group was underpaying producers, around 20 individuals carried out two commando-style raids on one of the dairy group’s plant last week.
However, Entremont has upped its price by EUR19 (US$28.2) per 1,000 litres to EUR262/1,000 litres.
A spokesman for Entremont played down any suggestion that the group had backed down in the light of the raids.
“There’s no link whatsoever and we are seeking prosecutions over the raids. We never ruled out agreeing to an increase but qualified this by saying that we had to be careful of any impact on our on-going merger talks with Sodiaal. This increase has the support of Sodiaal and if our negotiations with them are conclusive, it will be applied to milk deliveries in November and December too,” the spokesman added.
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By GlobalDataNegotiations between Entremont and Sodiaal are due to end at the end of the month.