French retailer Intermarché has signed an agreement with Groupe Savencia Fromage & Dairy, which will see the retailer increase the purchase price for cheese produced by the group.
In turn, the agreement means that Savencia will be able to increase the price that it pays farmers for milk, to €375 per 1,000 litres.
In a statement, Intermarché, which is part of the Mousquetaires Group, noted that the agreement forms part of a 'responsible approach to revalorise the dairy sector, to ensure sustainability and promote healthy and sustainable food for the benefit of all.'
The retailer's president, Thierry Cotillard, said that the agreement indicates how "distributors and processors can [...] take their responsibilities in order to find concrete answers to the question of the creation and equitable distribution of value".
The agreement will be made transparent to independent and certified auditors, the group added, in order to ensure the visibility of the tariff increase at all points along the supply chain.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.