Milk market clash in Europe

Published 2024년 11월 7일

Tridge summary

The European and Italian dairy markets are stable with strong demand and satisfactory raw material prices, but face underlying issues. In France, a conflict between Sunlait and Savencia over collective negotiation highlights compliance concerns with EU regulations as Savencia prefers individual contracts. Meanwhile, Lactalis is cutting organic milk purchases due to reduced demand, impacting several EU countries. In the Netherlands, Lactalis faced legal action for unfair practices, similar to issues in Italy, showing the dairy industry's strong bargaining power over producers despite EU efforts to improve producer negotiation capabilities.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The European and Italian dairy market is going through a phase of stability, with lively domestic and international demand, production that is growing, but at a very slow pace, and market prices for raw materials at a satisfactory level. The latest report on the medium-term prospects of European agricultural markets released by the Brussels Commission speaks openly of a situation that favors good income performance for producers. However, when we analyze what happens daily in the European dairy market, we discover that not everything is going well. Some recent news released by the European information agency Euractive, regarding France, are worth reporting, because they could anticipate future dynamics in the Italian market, or perhaps already underway and which are not discussed. The first refers to the difficulties in closing the supply contract between the association of producer organizations Sunlait and the large dairy group Savencia. The latter refuses to sign the agreement ...

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