the French dairy sector under pressure

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Benoît Gavelle is a milk producer in Eure. Today, he has around 130 cows milking and produces between 3,500 and 4,000 liters per day. It supplies a large dairy group which exports its products abroad. But in recent days, the breeder has been worried: China has just introduced new tax increases, from an additional 21 to 42%, on imported dairy products.

Currently, the price of milk reaches 440 euros per 1,000 liters, but Benoît Gavelle fears an imminent drop. “If it drops further, we will really be well below production costs. The first adjustment variable will be the breeder’s remuneration. And it’s a catastrophic message to have remuneration which is either falling or zero”, he explains.

Cream, fresh and processed cheeses, certain milks and even blue cheese are affected by these new customs duties. The Chinese market represents a major outlet for the French dairy industry: in 2024, exports to China would reach 370 million euros. Professionals now fear a sharp drop in sales.

François-Xavier Huard, president and CEO of the National Federation of the Dairy Industry, warns: “If you have a product like cream that you sell for 100 euros today, you are currently adding 15 euros in customs duties. Tomorrow, you will have to add 30 more, which would bring the price to almost 150 euros. At this level, the Chinese consumer will no longer be able to afford such a high price.”

For the moment, these customs duties remain provisional. Discussions between Europeans and Chinese must continue. If unsuccessful, they could become final by the end of February.