On-the-Ground Update

Centrale del Latte d’Italia (CLI): three-year price agreement with Italian farmers

Cow Milk
Italy
Regulation & Compliances
Ricardo Lopes
Published Jan 5, 2021
First contract of such a long duration signed in Italy, with 70 stalls scattered between the provinces of Tuscany and Bologna involved. A supply chain project was also launched to increase the value of the raw material.

Thirty-six cents per liter plus bonus.
This is the price that Centrale del Latte d'Italia will pay to the cow's milk producers of the Terre del Granducato and Cooperlatte milk producers cooperatives for the three-year period 2021-2023, in addition, the company explains, "to the usual increases for quality", such as bonuses for organic milk (which represents a large part of the production of Tuscan farmers), already provided for by the previous agreement on the price of milk, valid until 31 December of this year. These premiums brought the price actually paid to farmers up to € 0.45 per liter.


Via supply chain project to create more value
With the agreement an Integrated Supply Chain Project is launched, with a new production regulation, capable of filling Tuscan milk with additional qualitative contents of the local product, increasing the physical and psychological well-being of the animals, launching new original products with a high health content, in new eco-sustainable packaging, aimed at particular consumer segments and will represent a further leap in quality of Mukki milk in the milk market.

Centrale del Latte d'Italia, with 4 production plants and about 415 employees, produces and markets milk and its derivatives under the TappoRosso, Mukki, Tigullio and Vicenza brands in the reference territories, through over 16,000 points of sale both in large-scale distribution and commerce traditional.
This year the company was acquired by the Newlat group, and in July it absorbed the subsidiary Centrale del Latte della Toscana with a merger by incorporation, as part of a rationalization of the subsidiaries decided by the new owner.
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