Lactalis Condemned in Italy for Under-Cost Pricing

Regulation & Compliances
Market & Price Trends
Published Feb 28, 2024

Tridge summary

French dairy company Lactalis has been penalised for not adhering to contracts with Italian farmers and unilaterally altering them, particularly in relation to milk procurement prices. The Italian Ministry of Agriculture's Central Inspection found that Lactalis breached the law which mandates that prices paid to farmers should not be less than the production cost. The company, which owns multiple Italian brands, intends to contest any penalties.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Lactalis fined for unfair practices in milk procurement prices from Italian farmers. "First historic victory in a milk price battle. We were the only organization that denounced the multinational Lactalis because it did not respect the contracts it had made with the farmers, modifying them unilaterally. And we ask that Lactalis now pay the difference to the milk producers as well," said Mr. Ettore Prandini, president of the Coldiretti Italian Farmers Union. After the relevant complaint, the controls began and all the contracts and changes made by the multinational came under the microscope of the Central Inspection of the Italian Ministry of Agriculture for the protection of quality and the suppression of fraud in Italian agri-food products (ICQRF). The law violated by the multinational stipulates that prices paid to farmers and ranchers must never fall below the cost of production. The French multinational, which has bought Italian brands Parmalat, Locatelli, Invernizzi, Galbani, ...
Source: Agrotypos
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