economie.gouv.fr,Laits et produits laitiers

Dairy Products: French Government Outlines Measures to Support Sector

Paris, November 7, 2024 – The French Ministry of Economy and Finance has announced a series of measures aimed at supporting the dairy sector amid ongoing challenges. The measures, outlined in a new article published on the ministry’s website, focus on reducing production costs and improving market conditions for farmers.

Key Measures

1. Reduction of Production Costs:

  • Extension of diesel tax reduction: The government will extend the current tax reduction on diesel fuel used in agricultural machinery for an additional two years, until 2026.
  • Support for energy efficiency: Farmers will receive financial assistance to invest in energy-efficient technologies, such as solar panels and energy-saving equipment.
  • Relief on fertilizer costs: The government will increase subsidies for fertilizer purchases to offset the rising costs of these inputs.

2. Market Support:

  • Promotion campaigns: The government will launch national campaigns to promote the consumption of dairy products.
  • Market regulation: The government will work with industry stakeholders to regulate the supply and demand of dairy products, ensuring fair prices for farmers.
  • Export support: The government will provide financial assistance to dairy exporters to expand their markets and reduce their reliance on the domestic market.

Government Rationale

The French government recognizes the importance of the dairy sector to the national economy and the livelihoods of rural communities. The measures announced aim to address the challenges faced by farmers, such as rising production costs and volatile market conditions.

By reducing production costs and supporting market demand, the government hopes to create a sustainable future for the dairy sector and ensure the continued supply of high-quality dairy products to French consumers.

Industry Reaction

The French dairy industry has welcomed the government’s measures. Representatives from the industry association, the Fédération Nationale des Producteurs de Lait (FNPL), praised the government’s commitment to supporting farmers and ensuring the sector’s competitiveness.

However, some farmers have expressed concerns that the measures may not be sufficient to address the structural challenges facing the sector. They argue that long-term reforms are needed to improve market conditions and reduce the volatility of dairy prices.

Conclusion

The French government’s announcement of support measures for the dairy sector signals a recognition of the importance of this sector to the national economy and rural communities. The measures are intended to address the challenges faced by farmers and create a sustainable future for the dairy industry. While some farmers have expressed concerns about the adequacy of the measures, the industry as a whole has welcomed the government’s commitment to supporting the sector.


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