France’s milk producers’ federation, the FNPL (Fédération Nationale des Producteurs de Lait), has accused supermarkets of destabilising an already difficult market by sourcing some supplies outside of the country.
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The federation highlighted that the volume of milk marketed by its members fell by 4.1% in November and by 4.8% in December while producer prices over the two months fell by 10%.
“At a time when producers are seeing their revenue hit by a double whammy of falling volumes and prices, certain supermarket chains are adding to their difficulties by dubious practices, in particular the import of milk supplies from Germany,” the FNPL claimed.
It added that this practice is designed “to take advantage of lower prices in Germany in order to put pressure on prices in France and also to increase retailers margins”.
“We deplore this type of behaviour on the part of retailers, which only contributes to the deterioration in the income of milk producers,” the FNPL underlined, calling on retailers to adopt “a responsible attitude.”
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By GlobalDataEarly last month, French milk producers and dairy companies reached an agreement on milk price cuts, bringing to an end a month-long dispute which saw deliveries stopped and production plants blockaded.
