In September 2021, Sunlait took Savencia to court for non-compliance with the formula for determining the base price, contractually agreed in June 2018.
Sunlait
Sunlait

In September 2021, Sunlait took Savencia to court for non-compliance with the formula for determining the base price, contractually agreed in June 2018. The Coutances Judicial Court (50) convicted Savencia in its deliberations of August 30, 2022. Savencia chose to appeal this judgment. The case was therefore referred to the Caen Court of Appeal (14).

The hearing took place on September 19, 2023 and the judgment was postponed until December 5, 2023. In its deliberations of December 5, 2023, the Caen Court of Appeal overturns the first instance judgment. Sunlait takes note of this decision.

Sunlait regrets the significant deviation of the judgment delivered by the Court of Appeal compared to the judgment of first instance at the Judicial Court. In particular, the Court does not take into account the imbalance in the relations between producers and buyers.

The litigation required a lot of energy and involvement from Sunlait representatives. On the other hand, it is the collective which made it possible to organize and provide the means for a legal procedure of this magnitude. Massification makes it possible to pool this mission of marketing milk, with costs controlled at the scale of the member farms.

Sunlait showed courage and determination to promote the interests of producers who are members of Sunlait PO members.

AOP Sunlait remains convinced of the need to achieve a lasting commercial collaboration based on a win/win partnership that creates value.

Milk producers should no longer be the adjustment variable. In a context of dairy decline and favorable market demand for milk, we must continue our work to offer the best valorization conditions to our member producers. A better balance with the downstream is necessary and will involve a diversity of buyers.

The Sunlait collective remains focused on the future, to find opportunities for 100% of members with different clients, Savencia included, and will offer collective solutions.

AOP Sunlait: Association of Producer Organizations (AOP) of cow’s milk which ensures the marketing of nearly 600 million liters of milk, produced by nearly a thousand dairy farms within its 6 Production Organizations. Producers (OP) members, mainly in the Hauts-de-France, Grand Est, Bourgogne-Franche-Comté, Nouvelle-Aquitaine, Brittany and Normandy regions.

Savencia Fromage & Dairy: one of the world’s leading milk processors, 2nd French cheese group and 5th worldwide. With a turnover of 6.6 billion euros and more than 21,000 employees in 31 countries. Focused on cheese and dairy specialties, Savencia Fromage & Dairy is an independent family group listed on Euronext Paris.

New Zealand’s dairy sector faces an uncertain future due to several challenges, including water pollution, high emissions, animal welfare concerns and market volatility.

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