Lactalis collection worldwide
The processing of dairy products requires milk to be collected as close as possible to our dairies and cheese factories. Every year, Lactalis collects around 22 billion liters of milk from some 460,000 partner producers in 49 countries. The methods used for this collection vary from one country to another, and even from one producer to another. There is considerable variability depending on farming systems, the type of relationship with farmers, and local regulations.
Key figures
22
billion liters of milk collected worldwide
460000
Dairy farmer
49
Countries collected
In general, Lactalis sources its milk through three main channels :
1. Direct collection: Lactalis contracts directly and individually with dairy farmers. Each partner farmer is collected from their farm and benefits from a “personalized” relationship: they receive regular visits from their Lactalis dairy technician, who can provide advice and technical recommendations to help them develop their business. This organization allows us to build close relationships with our partner farmers.
This system is in place in France, where Lactalis collects milk from around 9,500 farmers. There is one particular feature: even though Lactalis has an individual relationship with each farmer, the majority are members of producer organizations (POs) that negotiate milk prices and contractual terms.
2. Indirect collection: Lactalis does not contract directly with individual producers but with intermediary organizations, whether private companies or agricultural cooperatives. In this type of operation, the volumes purchased, quality criteria, and prices are discussed at the organizational level rather than with each individual producer.
This system is used in many countries, such as Italy and Germany, with a few differences. In Italy, collection is mainly indirect, but this does not prevent our technicians from regularly visiting farms to provide technical support to farmers. Conversely, in Germany, technical support for farmers is mainly the responsibility of the cooperative with which we have contracted.
3. Purchasing on the markets: in some countries, milk collection is centralized by the local authorities. In these situations, Lactalis does not actually collect the milk but purchases the quantities it needs for its activities on a “market” at a given price. Relations between Lactalis and producers are then limited to meetings between the various representatives; with a few exceptions, Lactalis does not visit farms.
This system is particularly prevalent in Canada, where Lactalis purchases milk from regional “milk boards.”
Beyond these three main operating models, there are a multitude of situations depending on the countries where Lactalis operates.
1. Farmers without contracts: in some situations, there is no long-term contract between Lactalis and producers: collection is done on a day-to-day basis. Farmers can stop selling us their milk at any time.
2. Collector associations: in some countries, associations are responsible for collecting milk from different producers in a given region and then reselling it to Lactalis; this model is relatively similar to indirect collection. This type of model can be found in Turkey, where associations collect milk from more than 28,000 producers with a few cows at home or larger farms.
3. Milk Collection Centers: to support and structure the dairy industry in rural areas that are remote and face logistical challenges, Lactalis has developed a network of more than 650 intermediate collection centers (Milk Collection Centers) between producers and processing sites. Producers deliver their milk to these centers, and Lactalis then transports it to its processing sites. For example, collection in Brazil works in this way.
With regard to milk transport in different countries, it is carried out:
• Internally: The trucks are owned by Lactalis and the milk drivers are employees of the group. We operate in this way in France and Spain.
• Externally: Lactalis uses third-party companies to provide transport. In rare cases, transport may be provided by the producers themselves. This is the case in the United States, where some of our producers have their own trucks.
