French Farmers Set Up Roadblocks Over Milk Prices
Source: Reuters25/08/2008 Rennes, Aug 25 - Dairy farmers in western France burnt tyres and blocked a distribution point on Monday to protest low milk prices paid to producers by one of the country's biggest cheese manufacturers.
The farmers have been protesting for several days against a decision by cheese group Entremont-Alliance to increase milk prices by 30.10 euros ($44.44) per 1,000 litres to 311 euros from July, instead of a 49 euro rise sought by producers.
"The farmers are very determined. They cannot allow the manufacturers to fix the price without discussion, and they do not want to become their adjustment variable," FDSEA union leader Rene Collin told Reuters.
"Actions will continue and grow in scale until there are discussions," he added.
Entremont said in a statement on its website that a 49 euro increase was unrealistic. It said it had requested CNIEL, the body that oversees the industry to introduce more flexible price-setting mechanisms.
It said its offer was "in accordance with market developments".
The protests echo similar actions in other countries, notably Germany, where dairy farmers have been angered by a sharp drop in milk prices since the EU raised production quota limits in April to dampen sharp rises seen over the past year.
Entremont-Alliance says it is Europe's largest producer of Emmenthal cheese, generating sales of 1.64 billion euros in 2007, and is a major operator in the butter, milk powder and lactoserum markets.
Farmers have blocked Entremont-Alliance's distribution sites in the region since last week over the row, and only withdrew from a main site under threat of police intervention.
A meeting between dairy farmers and the company's leadership is scheduled for Aug. 28. Entremont-Alliance did not immediately respond to telephone messages.