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France

Agreement reached on price of milk

Text by NEWS WIRES

Latest update : 2009-06-04

After three weeks of protests, French dairy producers agreed on a deal fixing the price of milk for this year, raising the average price per litre to 2.80 euros. The main French farm union said the agreement was "unsatisfactory but essential".

REUTERS - French dairy producers and processors hammered out a deal late on Wednesday on the price of
milk for this year, following three weeks of protests by farmers furious at a near 30 percent slump in prices over the past year.
 
After the latest round of talks between milk producers, dairies and manufacturers, the parties agreed to an average
price of 280 euros ($397.2) per 1,000 litres in 2009, France's farm ministry said.
 
Dairy producers had initially been seeking 305 euros per 1,000 litres, before cutting their proposal last week to 290
euros. Manufacturers had been seeking 267 euros.
 
France's main farm union, the FNSEA, called the agreement   "unsatisfactory but essential."

"If a solution hadn't been found quickly, prices would have stayed at disastrous levels," it said in a statement on
Thursday.
 
The farm ministry, which brokered the deal, said it welcomed "the opportunity to ensure the visibility and stability that the
sector needs."
 
The price row erupted last month after farmers suffered a sharp fall in their prices for April, which were down 20 percent
on the month and 29 percent year-on-year, according to figures from French statistics office Insee.
 
Farm unions claimed producers received 205 euros per 1,000 litres for April, which was below their cost of production, while manufacturers argued French prices should fall in line with lower levels in the rest of Europe and on the world market.
 


 

 

Date created : 2009-06-04

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