Lactalis forced to raise its prices in the face of tensions in the Middle East

French food giant Lactalis has announced that it will have to pass on some of its increased costs to consumers through higher prices, due to the economic fallout from the conflict in the Middle East. The group, which owns brands such as Président, Lactel, and Galbani, cites significant pressure on its expenses for several weeks.

According to its CEO, Emmanuel Besnier, the war has led to a significant increase in transport and packaging costs, two particularly sensitive areas in the food industry. Faced with this situation, the company considers it unavoidable to pass on some of these additional costs to consumers.

An impact estimated at several tens of millions

Lactalis estimates that the conflict already represents an additional cost of several tens of millions of euros. This increase comes within a broader context of tensions in supply chains and energy prices, affecting the entire agri-food sector.

The group maintains, however, that it wants to limit the impact on final prices as much as possible. Its management indicates that it is seeking to tailor the increases to individual products, in order to preserve consumer purchasing power while absorbing some of the additional costs.