French dairy co-ops to emerge
French farmer-owned dairy co-ops 3A and Sodiaal are to merge to form a group with US$6.5bn in sales as the sector braces for increased competition when European production quotas come to an end.
Sodiaal, France’s largest dairy co-op produces 4.1 billion litres of milk year and made €4.4bn in sales last year. The deal is to be completed at the end of the year.
“This tie-up will allow them to join forces in a context of changes expected in the dairy sector from 2015 with the end of production quotas,” a statement from the group said this afternoon.