(08 January 2020) - The concentration of the French dairy industry between three major producers, which is one of the causes of the impoverishment of milk producers, paradoxically ranks the sector above its global competitors.
France’s dairy industry would appear to have the most competitive advantages over other milk-producing countries, according to a new study carried out by the consulting firm Agrex for France Agrimer.
This statement may come as a surprise to many French milk producers, given that the selling prices of most dairy products do not enable many farmers to recoup their costs. Their distress is such that dairy farmers are over-represented in the number of suicides among farmers, as shown by the study of the Mutualité Sociale Agricole (MSA) published in September 2019.
And that is the paradox of the situation. Among France’s assets identified by the study, the supply of milk supply lies in the hands of three producers: Lactalis, Sodiaal and Eurial. By 2018, they had a combined market share of over 52% of the market, a concentration which explains the gradual impoverishment of milk producers. (EurActiv)