Dairy prices expected to rise in France due to drought

Milk prices in France, which are already at high levels, will continue to rise even higher due to drought, BFMTV reports.

According to the channel, because of the historic drought in France, farmers and cattle breeders will no longer have enough grass to feed their cows. This will have negative consequences for all dairy products.

“The rise in dairy prices, which has persisted for several months now, will continue,” the channel quoted Benoît Rouillet, economic director of the National Interprofessional Centre for Dairy Economics (Cniel), as saying.

Due to inflation caused by the rapid economic recovery following the COVID-19 pandemic and the Russian special operation in Ukraine, prices in France increased by 4.5% for yoghurt from June 2021 to June 2022, semi-fat milk also by 4.5%, butter went up by 9.8% and cheese by 5.2%.

As Ruye added, the price level for dairy products is not expected to drop in the coming weeks, as the situation has been exacerbated by the abnormal heat and the unprecedented drought this summer. Moreover, cattle farmers may give up some of their cows as feed prices for dairy cows rose by 25.9% in May compared to May 2021.

In 2021, cow milk producers were paid on average about 390 euros per 1,000 litres of milk, which is 4.3% more than in 2020. Already in May 2022, that amount rose to 427 euros per 1,000 litres.

In July, water restrictions were imposed throughout France because of drought. The country has already experienced three waves of abnormal heat this summer with temperatures climbing above 40 degrees. This week, France is expecting a fourth heatwave, which will peak on Friday.