Both Lactalis and farm organisations have welcomed the agreement, reported by French media to ensure a price of 27.5c/l for all milk supplied in 2016.

Dominique Barrau, secretary of FNSEA, the largest farm organisation in France, told Reuters news agency: “It brings Lactalis to the level of its competitors and the organisation called for an end to the protests.”

The deal negotiated is 1c/l above the initial offer proposed by Lactalis at the beginning of the talks last week.

Lactalis, which produces cheese, milk, butter and yoghurt and sells under brand names which included President, Bridel, Galbani and Lactel, confirmed the agreement but refused to give any detail.

Manuel Valls, prime minister of France, called the deal a positive development.

Boycott

Between 2,000 and 3,000 angry French dairy farmers caused traffic chaos with their protests outside the company’s headquarters in Laval, western France. They also protested at supermarkets and called on consumers to boycott Lactalis products.

Lactalis will increase its milk price to 29c/l for milk supplied between August and December as a way of achieving a full-year average price of 27.5c/l. FNSEA has said it costs farmers between 33c and 38c/l to produce milk in France. Lactalis claimed that the deal amounts to €150m in support to farmers.

Lactalis is a private company and doesn’t publish results, but its website shows it has a turnover of €17bn and employs 75,000 people in 85 countries in the EU, the Americas, Asia and Africa.

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