20 Sep 2009

Milk price protests in France

10:58 am on 20 September 2009

The French government has held emergency talks with farmers to avert protests over falling dairy prices.

On Friday, 3.5 million litres of milk in fields were dumped in fields near Mont Saint Michel, as a sign of protest.

Farmers say that milk prices are now so low that they are selling their milk at about half its production cost.

The BBC reports the government has offered substantial aid packages and will hold more talks with insurers and banks to secure further support.

The farmers say that an EU plan to end production quotas will have a huge impact on supply and demand, as well as prices.