Lidl France and Lactalis have agreed to increase milk prices for dairy producers in a bid to offer better remuneration.
The move will see the remuneration for dairy farmers in France up by €15/1000 litres to €385/1000 litres, and €410/1000 litres all premiums combined.
“In 2022, we are going even further with a historic revaluation, which is fully in line with the spirit of EGalim 2. It is with this type of agreement that we will be able to change the situation in favour of the agricultural world, and allow farmers to see the future more serenely. The condition remains total transparency between the players,” said Michel Biero, executive director of purchasing at Lidl.
EGalim 2 is part of the French food law that protects farmers' remunerations.
Renewal Of Commitment
Lactalis added that the agreement also means a renewal of commitment to national brands and distributor brands by both partners, with the aim to ensure fair remuneration for dairy producers partners of Lactalis.
The agreement covers all volumes of milk used by the Lactalis group for manufacturing national brand products sold under various labels, including Président, Lactel, La Laitière, among others.
It will also be used for products made by Lactalis for Lidl, such as Milbona, Envia, Chêne d'Argent, that are distributed in approximately 1,580 Lidl supermarkets in France.
Jean-Marc Bernier, managing director of Lactalis France, said, "This agreement confirms the commitment of our two companies to better value the work of our partner milk producers, and to support them in taking into account the increase in agricultural and industrial production costs.”