France’s dairy giant, Lactalis, has been accused of engaging in “unfair” trading practices in milk procurement by Italy’s principal farmers’ association. Coldiretti, representing Italy’s agricultural industry members and farmers, has raised concerns about 16 alleged “unfair practices” undertaken by Lactalis. The association has reported the company to the Central Inspectorate of Quality Protection and Fraud Repression (Icqrf) – Italy’s Ministry of Agriculture’s dedicated organization for consumer and producer protection. The violation claims primarily revolve around Lactalis lowering contracted milk prices, which negatively impacts farmers.
A spokesperson for Lactalis responded, defending the company against the allegations and stating that they have longstanding contracts with approximately 2,000 farmers in Italy. Coldiretti, on the other hand, argues that Lactalis made unilateral modifications to the contract by reducing recognized prices and introducing a new index connected to non-agreed prices of European milk. Additionally, Coldiretti claims that Lactalis has delayed milk payments and paid suppliers below-cost prices.
Despite these allegations, Lactalis expressed a willingness to engage in peaceful discussions with governmental authorities to contribute to the growth and development of the dairy industry. Lactalis, a privately-owned French major, dominates nearly one-third of Italy’s dairy market following several acquisitions, including Invernizzi in 2003, Galbani in 2016, Parmalat in 2018, and Nuova Castelli in 2019. Furthermore, Lactalis has faced legal issues in Australia and challenges related to safety rules and environmental governance in its home market of France.
Lactalis emphasized its strong connection with the agricultural sector due to its commitment to legal obligations, dialogue, and communication.
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