PARTNERSHIPS Our relationships with dairy cooperatives often transcend the basic customer-supplier relationship, sometimes contributing directly to enhancing the value of the milk provided. Such is the case of Agrial, which provides us with part of the milk it collects from 2,400 members in Western France and which holds a stake in our subsidiary Compagnie Laitière Européenne. Such is also the case for the Union Bressor cooperative, our partner for the manufacture of Bresse Bleu, or in Argentina with the AUT cooperative in partnership with our subsidiary Milkaut.

FROMAGERIES LESCURE: A PARTNERSHIP FOR GOAT MILK The alliance concluded with the Terra Lacta cooperative at the end of 2013 is another illustration of our partnership approach. In the case of goat milk, our alliance has taken the form of a joint company, Fromageries Lescure, processing the 110 million liters of goat milk collected by Terra Lacta from 500 producers in the Poitou-Charentes region of France.

The objective is to develop the growing market for goat milk cheese, both in France and internationally, by boosting the existing flagship brands, reinforcing product quality and reaping the benefit of our sales organization.

In parallel, we help farmers improve their farm performance in particular by better smoothing the milk production curve which is subject to strong seasonality.

It is very important to have diversified outlets for our milk so as to smooth out changes in the markets, price volatility and the impact of geopolitical developments such as the Russian embargo. Competition is fierce: we need to be competitive and stand out by our quality. We are and we do. Our territory is one of the best in the world for producing milk and we take pains to ensure that our milk is produced in accordance with best practices: the whole of Agrial s collection zone is ISO 22000 certified both for milk collection and for on-farm cooling. Diversification of risks and differentiation based on quality: these are goals that we share.

PASCAL LEBRUN President

of the Milk Division of Agrial

COLLECTING MILK IN ALL SAFETY

In France, we collect milk from each farm 120 to 180 times per year. The imperative of safety has led us to develop a farm safety protocol based on joint discussion and review with milk producers. The aim is to avoid accidents by improving circulation flows and milk tanker access. 3 farms out of 4 are already involved in this approach.

140 million liters/year are collected by the Group in France, Spain and Poland.

GOAT MILK

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