Roma – Lactalis has hit a new case of unfair practices, this time in the Netherlands. The Netherlands Consumer and Markets Authority (ACM(b) imposing an order subject to periodic fines on the cheese producer Royal Lactalis Leerdammer (Lactalis Leerdammer) for breaching the Dutch Unfair Practices Act. ordering the modification of a supply contract relating to the price of milk, for example including a transparent and objective pricing system. A case that follows what has already happened in our country with Italatte, a subsidiary of Lactalis, following the complaints presented by Coldiretti and then verified by the ICQRF.
The farmers’ association Leerdammer Collectief (LVLC) has filed a complaint with the ACM (Dutch Market and Consumer Authority) denouncing Lactalis Leerdammer for violating Dutch law regarding unfair commercial practices in the agricultural and food supply chain, specifically in relation to the unilateral changes. with the price of milk made by French multinationals.
Below AGRICOLAE publishes the ACM note:
LACTALIS, ACM: PROHIBITION OF UNIFORM CHANGES IN THE PRICE OF MILK
Following an investigation, ACM concluded that Lactalis Leerdammer had breached the prohibition on unilaterally modifying the terms of a supply contract.established in Dutch law. Lactalis Leerdammer informs the farmers every month what price they will receive for their milk, without Lactalis Leerdammer and the dairy farmers having agreed in advance how this price will be set. Since farmers supply milk exclusively to Lactalis Leerdammer and are unable to disrupt the supply in the short term – the ACM note states -, dairy farmers basically have no other choice but to accept this price.
LACTALIS, ACM: ADAPTATION CONTRACT AND TRANSPARENT PRICING SYSTEM INCLUDED. RISK OF 1 MILLION EURO PENALTIES
Ordina ACM and Lactalis Leerdammer on Tuesday adapt the supply contract to Dutch law no later than three months after the publication of this decision. This can, for example, including a transparent pricing system in the supply contract. For suppliers, it must be clear in advance how prices are determined and suppliers must be able to verify this. If Lactalis Leerdammer does not comply with this order, they will have to pay penalties of up to 1,050,000 in total. If requested by Lactalis Leerdammer, ACM is willing to review the amended contract and provide guidance.
LACTALIS, THE PRECEDENT IN ITALY. THE COLDIRETTI COMPLAINT, THE ICQRF RESULT AND THE MASAF ADMINISTRATION
A number of violations – wrote AGRICOLAE in January 2023 – have been discovered by the Icqrf following the complaints presented by Coldiretti regarding unfair practices in July 2023 towards the company Italatte Srl which is still under ongoing investigation. A new complaint was received in 2024.
In August the ICQRF Department had received the list of suppliers (over 360 subjects including direct breeding companies, cooperatives and OPs), the main contract types (by region and type of operator), 6 contract changes that occurred at Italatte and exchanges of letters. on the contract changes that took place in May 2023.
In September 2023, a second inspection was carried out to obtain contracts, invoices and payment confirmations, letters, for 26 selected suppliers. It turned out that 16 out of 26 suppliers analyzed were subject to unilateral modification of the contractual conditions regarding price.
After this the first sanction for Lactalis. From what can be seen – AGRICOLAE wrote in February – from the Masaf website under the section dedicated to Unfair Practices, the criticism of Italatte, with Order no. 86/2024 on 22 February 2024, a fine of €74,144.89 in accordance with the provisions of Art. 4, paragraph 1, letter. d) of the legislative decree lgs. n. 198/2021, following the complaint reported by Coldiretti. From what we understand, this is the first instance, now additional checks, additional compensation to be paid to agricultural companies in question.
LACTALIS, APPEAL INITIATIVES AND THERE’S A PIE TABLE
Lactalis states that the contractual changes will take place in 2023 proposals allowed farmers to earn 40 million euros, more than 10% more than originally ordered with a price in line with the market. Considering the alleged economic damage completely unfounded, Lactalis announces that its subsidiary Italian to appeal against any sanctions that may be imposed.
Giovanni Pomella, CEO of Lactalis in Italy, declared: “The theme of model of definition of Sustainable milk prices are a priority for the entire supply chain today that must be addressed with active participation of all economic and institutional operators. In this sense auspichamo continue as a proper and collaborative dialogue with all parties in the sector opening comparison table against milk saving campaign that allows protect the whole supply chain. About this i will ask in person and meeting at Minister Lolobrigida“.
LACTALIS, LOLLOBRIGIDA: IMPROVING THE MILK SUPPLY CHAIN. OPEN FOR COMPARISON
“We will not go into the proceedings arising from investigations, in addition at the request of an agricultural association, Coldiretti, which reported this phenomenon discovered by the inspectorate at the time. As far as it concerns us – the Minister of Agriculture Francesco Lollobrigida d’AGRICOLAE declared in February – we do not refuse meetings to talk about the condition, as Lactalis asked us, because in fact, in the letter they sent us it is not it’s the first one. time to let us meet the milk supply chain. What interests us is not to criticize or fire companies, but to improve the supply chain, balance and respect the rules. When we want to improve we are open and available to everyone.”
www.agricolae.eu
www.lactalis.com/en/le-groupe-lactalis
Wrote:
Lactalis, and in Italy it was approved, in France farmers occupied the headquarters: Pay us more
Milk, unilateral changes to contracts. Here are the unfair practices that ICQRF discovered after Coldiretti’s complaint. Italatte was called to the hearing on February 8. A new complaint was received in 2024
Unfair practices, Lactalis: hearing requested by Icqrf for some time. The verification procedure is not yet complete
Lactalis, the first sanction is issued to Italatte for unfair practices. This is it. Compensation for businesses is now involved. The multinational: we started an appeal and asked for a meeting with Lollobrigida
Lactalis: Icqrf sanction appeal sent. A meeting with Minister Lollobrigida and a discussion table was requested
Lactalis, Lollobrigida: we do not refuse a meeting, open to all if there is a desire to improve. VIDEO INTERVIEW
