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COAG Want French System for Milk Negotiations

26 April 2013

SPAIN – Farmers are demanding mediators to negotiate milk contracts to bring an end to industry decline.

This is according to the Coordinator of Farmers and Ranchers Organisations (COAG) who have requested a similar negotiating system to be introduced to that given approval in France.

French milk delivered in April, May and June will now be sold for 2.5 cents more following successful recommendation hearings, this has been supported by French Agriculture Minister, Stephane Le Foll.

Miguel Blanco, Coag Secretary General has the linked low Spanish milk prices to the country’s competition authorities not allowing for mediators to recommend a fair price to the processing and retail industry.

Spanish prices still sit under the EU average. February prices were 31 cents a litre, substantially lower than the 34 cents and litre average.

Coag are incensed by mandatory contracts, introduced in October 2012, that have imposed crippling prices on some farmers. Production costs are rising and have now overtaken contractual prices on some holdings.

Spanish farm groups have stated they would like to see parity with Spain and the rest of Europe, adding that climate and pasture quality is greater in northern and central Europe and increased pasture availability makes milk production cheaper for many.

TheCattleSite News Desk

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