The core rationale driving this reduction is a calculated effort to significantly reduce exposure to volatile international trade. Lactalis explicitly aims to limit the processing of surplus milk that is typically sold abroad as low-value bulk commodities, such as milk powder. According to Lactalis’ supply director, Serge Moly, the valuation of this excess volume is “often very low and subject to the volatility of world markets.” The strategic objective is to pivot toward a stronger focus on higher-margin consumer products, particularly cheese and yogurt.
While Lactalis frames the move as an effort to secure better farmgate prices for producers by prioritizing value-added goods, the decision has drawn sharp criticism from the French farming community. The French National Dairy Farmers’ Union (FNPL) immediately condemned the plan, publicly calling it a “withdrawal from the French dairy sector.” Union leader Arnaud Rousseau expressed serious concerns over the long-term reliability of milk collection for local producers, especially given the existing challenges and delayed government support within the nation’s livestock sector.
This aggressive strategic reorientation unfolds against a complex backdrop of severe global market pressures. The international dairy trade faces headwinds from declining import demand, most notably from the key buyer China, alongside intensifying competition from major global exporters, particularly New Zealand. These macro forces underscore the increasing difficulty for French processors to sustain high-volume commodity production effectively under current international market conditions.