Rabat - The ongoing boycott against high prices has caused Centrale Danone a major loss in revenue. Centrale Danone announced today that it has suffered a net loss of MAD 150 million in the first half of 2018 due to the boycott of its milk.
Rabat – The ongoing boycott against high prices has caused Centrale Danone a major loss in revenue. Centrale Danone announced today that it has suffered a net loss of MAD 150 million in the first half of 2018 due to the boycott of its milk.
Centrale Danone added that it had made a profit of MAD 56 million in the same period last year.
The dairy firm published a statement today, in which it shared the “significant” consequences of the boycott, which also targets high prices of two other companies: Sidi Ali mineral water and Afriquia gas.
“The company experienced, since the start of the campaign on April 20, a contraction of production and a consolidated revenue drop estimated at 50 percent,” the statement added.
The statement t recalled that the boycott has pushed Centrale Danone to reduce its order of milk by 30 percent from its 12,000 partner farmers since May 29. The company has additionally terminated the contract of its temporary workers.
Centrale Danone shallow promises
Since the launch of the boycott on April 20, Centrale Danone promised to meet customers’ demands. While boycotters have urged the company to lower its prices, Danone has denied that it has increased dairy products since 2013.
Instead, the company has also chosen to terminate its contracts with nearly 1000 farmers to overcome the crisis, according to Minister of General Affairs and Governance Lahcen Daoudi.
The company has not yet given any indication that it would decrease its prices. In its latest statement, Centrale Danone promised customers that it would “continue to take all actions necessary to satisfy” them. The statement added that the company will also make necessary decisions to “mitigate the effects of the boycott on its profit.
Government backs Centrale Danone
Government officials have urged Moroccans to end boycott on milk. Last Thursday, the government released a statement, expressing concerns about the “damaging consequences” of the boycott singling out Centrale Danone.
The government called on boycotters to end the campaign, which “negatively affects the 120,000 farmers who work for Centrale Danone and who support approximately 600,000 family members.
The government also warned that the boycott will make Morocco lose foreign investment, which according to the cabinet, will have a negative impact on the national economy.
The supporters of the boycott, however, are still resisting, emphasizing that the boycott will end only when the company lowers its prices.
The chief executive of Centrale Danone, Didier Lamblin, admitted last week that the impact of the boycott is “very significant.”