Towards a transparent, stable milk price for dairy farmers
Colruyt Group started a partnership with dairy business Inex to guarantee dairy farmers a steady market and greater income security. Dairy farmers, who subscribe, will receive a stable milk price of 34.76 cents per litre for 15 to 30 % of their production for five years. The agreement was presented today to the 450 member dairy farmers of Inex, who now have 6 weeks to think it over. If enough farmers accept the offer, the first products under private label Boni Selection will be on our shelves as from April 2020.
Stable price for 5 years
Colruyt Group and its Belgian partner Inex did a lot of research to determine the stable milk price. “We are convinced that the stable price of 34.76 cents/litre will offer dairy farmers greater income security and enable them to invest in sustainable growth”, says Stefan Goethaert, General manager Fine Food en retail services, and responsible for the group’s agricultural policy. The price will remain constant for five years for all participating dairy farmers. This price is also independent of the sales prices in the stores, which will continue to follow the prices of our competitors.
Destined for Boni Selection
If enough dairy farmers subscribe and the project can start, Inex will invest in a new production line for the extra milk volumes. The dairy expert will process the milk in most milk and dairy products of our private label Boni Selection. On the packaging, we will make a clear reference to this partnership. The products will be for sale in the group’s different food stores as from April 2020.
New milestone in our agricultural policy
This initiative fits in with our ambition to keep supply in Belgium as much as possible and to support local farmers. Stefan Goethaert: “A transparent, stable milk price makes short shrift of price fluctuations Belgian dairy farmers often have to cope with. In this way, we contribute to a sustainable business model that provides added value to all players in the chain.” Over the past few years, Colruyt Group already support the Belgian agricultural sector on several occasions. For instance, we participated in the support mechanisms for milk (2015) and pork (2016), and we started collaboration projects with several partners in the fruit, pork and organic vegetables sector.
With this initiative, we contribute to the following Sustainable Development Goals of the United Nations.