This forecast looks like it could be borne out immediately, with French dairy group Lactalis reportedly poised to strike for struggling French rival Entremont Alliance. Entremont made losses of 34 million euros in 2008 and around 10 million euros in the first quarter of 2009 but has denied reports in the French media that it is on the verge of bankruptcy. The firm has attributed its poor performance to a global fall in the price of powdered milk and butter and high domestic farmgate milk prices.
A spokesman for Entremont has revealed that there are strong indications that Lactalis will make an offer for the business in the second half of July. However, union representative and secretary of Entrement's work council, Jacques Dechasse, has suggested that the move could face regulatory hurdles, as it would give Lactalis a monopoly in the French market for emmental. Dechasse also suggested the move would have "disastrous consequences" for the firm's workforce.