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UPDATE 1-Farmers block supermarket distribution centres

Mon Jun 29, 2009 10:49am EDT

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(Recasts with action at Carrefour and Delhaize, adds background)

BRUSSELS, June 29 (Reuters) - Protesting farmers blockaded Belgian distribution centres of retailers Colruyt (COLR.BR), Delhaize (DELB.BR) and Carrefour (CARR.PA) to demand higher milk prices, the companies said on Monday.

Farmers blocked two of Belgian discount supermarket chain Colruyt's distribution centres on Sunday night, saying on Monday the blockade could last 24 hours or even several days.

Colruyt said in a statement the blockade could cost the company millions of euros.

A spokeswoman for Belgian retailer Delhaize said farmers had also blocked one of its distribution centres, while the entrance to a Belgian distribution centre for France's Carrefour was also blocked by tractors, a spokesman said.

Earlier this month, hundreds of dairy farmers protesting against low milk prices drove their tractors into Brussels before a European Union summit, causing traffic chaos in and around the city.

The farmers from France, Germany, Luxembourg and the Netherlands were demanding a 5 percent cut in milk production quotas for the 2009/2010 financial year, which they believe would boost prices.

The European Commission, which administers and regulates farm policy for the EU's 27 member countries, has dismissed the idea that the milk quota system, due to expire in 2015, is to blame for weak prices.

"We understand the concerns of the farmers and we are prepared to look for solutions with them. But a solution will require a political intervention," Carrefour spokesman Lars Vervoort said. (Reporting by Antonia van de Velde; Editing by David Holmes)



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