Prolek cooperative begins searching for new milk buyers after Lactalis ends a four-decade supply partnership.
Luxembourg’s dairy sector has been shaken after French dairy giant Lactalis confirmed it will not renew its milk collection contract with the Prolek producer cooperative beyond April 2027. The decision brings an end to a partnership spanning more than 40 years and leaves nearly 70 dairy producers searching for alternative milk buyers.
Prolek president Vic Wirtz described the announcement as a major disappointment but stressed that the cooperative is focused on securing solutions for all members. The cooperative represents 68 family-run dairy farms producing around 50 million litres of milk annually, accounting for an estimated 10% to 15% of Luxembourg’s total milk output.
The cooperative has already opened discussions with key dairy processors including Luxlait, Muh-Arla and Hochwald. Industry stakeholders and government representatives have moved quickly to organize crisis meetings, reflecting the significance of the issue for Luxembourg’s dairy supply chain and rural economy.
Lactalis said the decision was driven by difficult conditions in international dairy ingredient markets, citing shrinking margins and the relatively high cost of milk procurement in Luxembourg. The company stated that it intends to continue operating the EKABE facility while sourcing milk from outside the country and pledged to support affected producers during the transition period.
The situation has sparked concern among farming organizations and policymakers, who argue that replacing local milk with imported supplies raises questions about sustainability, food sovereignty and long-term dairy sector resilience. As negotiations continue, the focus remains on finding new processing outlets capable of absorbing Luxembourg’s milk production and protecting the future of family dairy farms.
Source: RTL Today – Prolek Seeks New Milk Buyer After End of 40-Year Partnership With Lactalis
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