Spanish Farmers Say Three Quarters of Milk Package Contracts Are Unfair26 September 2013
SPAIN – A farmers group has claimed that three quarters of all milk contracts are ‘abusive’ and are dictated to producers by processors.
This came as part of the Union of Farmers and Ranchers (UPA) slamming of the Spanish government this week for the lack of progress made in dairy milk contracts.
The UPA is concerned that farms will continue to quit dairying unless more secure contracts can be offered to farmers.
They say that current farmgate values of €0.52/litre are barely covering production costs.
Supermarkets have also come under fire, with farmers saying that low prices are partly attributable to pricing structures in some supermarkets that promote cheap milk as a ‘loss leader’.
This comes despite recent marketing strategies to promote milk under the ‘sustainable dairy product’ label.
The label was introduced to offer farmers stability by informing shoppers of the narrow margins that go into milk production.
TheCattleSite News Desk