French dairy companies have written to farmer milk suppliers across the country asking them to reduce milk supply over the coming months due to the impact COVID-19 is having on dairy markets.

CNIEL, the representative body for French dairy companies, farmers and processors, is asking French dairy farmers to reduce their milk supply in April by anywhere between 2% and 5%.

The industry says it will pay 32c for every litre of milk not produced

The French dairy industry has established a €10m fund to incentivise French farmers to curb production.

The industry says it will pay 32c for every litre of milk not produced. It says it hopes to reduce April milk supplies across France by as much as 30m litres, which would ease the seasonal peak in supply.

Balance

Speaking to the Irish Farmers Journal this week, CNIEL managing director Caroline le Poulter said the reduction in milk supply would help keep dairy markets in balance between supply and the major change on the demand side of the market since the COVID-19 lockdown.

The shutdown of the food service industry (restaurants, cafés, fast-food outlets, etc) has had a very negative impact on consumption of certain dairy products in France, such as specialist cheeses.

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