Milk Market | France

Milk, produced by the mammary glands of female mammals, is a generally whitish edible biological liquid that is rich in fat and protein.

The French milk sector has a turnover of 30 billion euros in 2015, 24.6 billion litres of milk were collected in 2015, 97% of which was cow's milk. The European Commission noted a 3.7% decrease in milk deliveries in November 2016 (-440,000 tonnes) after 6 months of consecutive reduction and prices increased by +25% between July and December 2016.

The French milk market is divided between farmers, producers and distributors, with the latter, most often major companies in the agri-food sector, they possess the highest bargaining power.

To gain market share, the major milk companies have taken up the challenge of internationalisation, relying on significant increases in demand in China (where the health scandals affecting the local sector have benefitted French milk).

The economic crisis continues to have a major and lasting effect on the European dairy market: the challenge remains to stabilise the economic health of the sector by rebalancing the balance of power between producers and distributors. 

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