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Lactalis is also getting rid of Scottish farmers

October 8, 2024 - Klaas van der Horst

The French dairy giant Lactalis is not only rationalizing milk supply in France, but also wants to collect less milk in Scotland, requiring suppliers to find alternative markets elsewhere. They have twelve months to do so.

The Scottish farmers' union is angry about Lactalis' decision. According to a spokesperson for the organization, it concerns twelve farmers in the south/southwest of the country who are struggling to find an alternative.

Earlier this year, supermarket chain Tesco also announced its intention to terminate contracts with a group of Scottish dairy farmers. However, this is unrelated to Lactalis' actions. The company aims to cut costs. For this reason, it also plans to part ways with around 600 French dairy farmers totaling approximately 450 million kilograms of milk by 2030. These are mainly farmers in eastern France and Brittany. Cost considerations are also the reason for this decision. By shedding suppliers, Lactalis can reduce its dairy exports, which is a loss-making activity for the company in France.

Klaas van der Horst

Klaas van der Horst is a senior market specialist in dairy at DCA Market Intelligence. He also closely monitors developments in politics and agricultural policy.
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