As members of the Prolek cooperative search for alternative partners, industry figures warn that finding a long-term solution will not happen overnight. While some see the crisis as an opportunity to rethink the current dairy model, many farmers are bracing for a long and difficult transition.
Three names are frequently mentioned as potential buyers for the affected milk producers: Luxlait, Hochwald and Arla, formerly known as Muh.
Luxlait has already indicated that absorbing an additional 50 million litres of milk per year would be difficult, largely because it would need to find markets for the surplus production. Arla, whose largest processing site is located in Pronsfeld in Germany's Eifel region, appears better positioned in terms of capacity. The cooperative has around 11,200 members and processes roughly 19.4 billion kilograms of milk annually. However, according to Alain Schaack, president of Luxembourg's Arla farmers, a rapid takeover of the EKABE suppliers is unlikely.
As Arla is a cooperative, the needs of its current members must take precedence, which means the admission of new members cannot be rushed. Integrating new members and establishing the necessary structures is a lengthy process that could take around a year.
Lactalis has justified its decision by citing an oversupply of milk, which has led to lower prices. In April, milk prices stood at around €0.40 per litre in Luxembourg.
Nevertheless, Schaack disputes the idea that the market is oversaturated, noting that global milk demand continues to grow by 1 to 2% annually. He argues that Lactalis's move reflects a wider shift away from Central and Western Europe, with the company seeking milk sources in other regions that may have fewer regulations or lower costs.
Lactalis, he says, will continue to operate in the dairy sector, but will increasingly focus on regions such as Australia or parts of Eastern Europe, notably Ukraine, where conditions may be more favourable for large processors.
Other voices in the sector are using this moment to challenge the prevailing model of global competition and relentless growth. Raymond Aendekerk, co-founder and spokesperson of the NGO platform Meng Landwirtschaft, suggests that the answer lies in strengthening regional networks of consumers and producers.
He points to existing initiatives such as the Leader programmes and national brands like Luxlait as examples of how producers and consumers can cooperate more closely. Consumers, he says, also play an important role in supporting local products and questioning the broader economic model that shapes food production.
While Luxembourg's dairy farmers are currently feeling the pressure, Aendekerk notes that farmers in the Global South often bear the brunt of global agricultural competition, a reality that receives far less attention in Europe.
