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Private Label

Auchan Signs Remuneration Deal With Private Label Milk Suppliers

Auchan has signed an agreement with Saint-Denis-de-l’Hôtel (LSDH) and l’Association de Producteurs de Lait du Bassin Centre (APLBC), with the aim of guaranteeing adequate remuneration for dairy farmers who supply the supermarket chain with milk, LSA-Conso.fr.

The dispute between large-scale retailers and suppliers of milk in France has been going on for months, with a definitive resolution yet to be reached. Auchan believes that the 370 LSDH dairy workers who produce its private label milk will remain content with the agreement, at least in the medium term.

The contract between Auchan, LSDH and the APLBC (which supplies milk to LSDH for treatment and bottling) is part of the grocer’s “responsible” supply chain resolution, which it announced in 2015.

The three-year deal, under which about ten million litres of milk will be produced, also has terms and conditions related to animal welfare.

© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.

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