“For three months, I have not paid myself a salary”, testifies Frédéric Epineau, milk producer in Orne and president of the Organization of Lactalis Grand Ouest producers. ” However, in April-May, the price of milk started to rise again. I had never seen this at this time of year. But, during the summer, it did not reach the expected level ”, he continues
Installed for eight years, Mr. Epineau, in contract with Lactalis, says he is worried. When he closed his annual accounts at the end of March 2021, he could only see a drop in the price of milk of 15 euros per 1,000 liters on average compared to the previous year. According to the public institute FranceAgriMer, standard milk was paid, on average, 329 euros per tonne in 2020, down 6 euros. A depreciation that industrialists and cooperatives – Lactalis and Sodiaal in the lead – have justified by the vagaries of the crisis due to Covid-19.
The sector was organized to absorb the overflow linked to the sudden closure of the catering and canteens, during the first confinement, in spring 2020. “We got through this crisis without asking the public authorities for a cent”, would like to remind Thierry Roquefeuil, president of the National Federation of Milk Producers (FNPL), a specialized branch of the FNSEA union.
The financial noose is tightening
After the shock, however, consumers bought more milk, butter or yogurt in stores. In addition, exports of French dairy products have not weakened. According to data from the National Interprofessional Center for the Dairy Economy, they increased in value in 2020, reaching 7.32 billion euros. Conversely, imports fell slightly, to 3.86 billion euros. Result: the hexagonal dairy products contributed to the tune of 3.46 billion euros to the positive balance of the trade balance.
However, the breeders had to tighten their belts once again. “In 2021, the overall economic situation is slightly better than in 2020, except that, in terms of the price paid to producers, we are skating”, underlines Mr. Roquefeuil. In the first six months of 2021, breeders received an average of 330 euros per tonne of standard milk.
At the same time, however, the charges keep increasing. Between the rise in soybean, rapeseed or grain prices, and the rebound in the energy bill, the financial stranglehold is tightening. The cost of production index has increased by 8% since the start of 2021. While commercial negotiations between manufacturers and distribution will begin to set prices for branded products, the FNPL is sounding the alarm: “This explosion of charges highlights the imperative need for full and immediate respect for the EGalim law [agriculture et alimentation] of 2018. The situation would not be as critical if the milk intended for France was actually paid for at least at the level of the cost price indicator, the calculation of which was drawn up and validated unanimously by the inter-profession. “
You have 14.61% of this article left to read. The rest is for subscribers only.