Lactalis to Pass On Middle East Conflict Costs, Warning of Milk Price Hikes
French dairy giant Lactalis announced that it will need to pass on additional costs resulting from the ongoing conflict in the Middle East to its customers, signaling potential price increases for milk and other dairy products. CEO Emmanuel Besnier stated that the war, involving the United States, Israel, and Iran, has caused a surge in energy prices, significantly impacting transport and packaging expenses. These unforeseen costs amount to several tens of millions of euros for the group. While Lactalis aims to minimize the impact on consumers where possible, the company is urging distributors to reopen commercial negotiations to share these burdens, though distributors have currently resisted. Despite these challenges, Lactalis reported a 2.9% increase in 2025 turnover to 31.2 billion euros and a net profit of 528 million euros. The company highlighted strong growth in the American market, exceeding 10 billion euros in regional turnover, and recent strategic acquisitions, including General Mills' yogurt activities and Fonterra's consumer business. The announcement was made during the presentation of annual results in Granada, Spain, amidst a complex global context marked by geopolitical instability and trade tensions.
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Lactalis to Pass On Middle East Conflict Costs, Warning of Milk Price Hikes
French dairy giant Lactalis announced that it will need to pass on additional costs resulting from the ongoing conflict in the Middle East to its customers, signaling potential price increases for milk and other dairy products. CEO Emmanuel Besnier stated that the war, involving the United States, Israel, and Iran, has caused a surge in energy prices, significantly impacting transport and packaging expenses. These unforeseen costs amount to several tens of millions of euros for the group. While Lactalis aims to minimize the impact on consumers where possible, the company is urging distributors to reopen commercial negotiations to share these burdens, though distributors have currently resisted. Despite these challenges, Lactalis reported a 2.9% increase in 2025 turnover to 31.2 billion euros and a net profit of 528 million euros. The company highlighted strong growth in the American market, exceeding 10 billion euros in regional turnover, and recent strategic acquisitions, including General Mills' yogurt activities and Fonterra's consumer business. The announcement was made during the presentation of annual results in Granada, Spain, amidst a complex global context marked by geopolitical instability and trade tensions.
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