Government Slammed Over Low April Milk Prices29 April 2014
SPAIN – Farmers have accused the Ministry of Agriculture, along with processors and distributors, of orchestrating a 10 per cent drop in milk prices.
Provisional data from the Union of Farmers and Ranchers (UPA) shows April’s farmgate values have dropped €20-30 per thousand gallons in what they described as a ‘resumption of malpractice’.
This is according to UPA livestock secretary Roman Santalla who warns that, once again, markets are seeing large companies dominating bargaining and values not reflecting production costs.
The revelations follow a ‘quiet period’ in which farmers have received more sustainable milk prices after a lengthy government led consultation into redistributing value in the milk supply chain.
However, Mr Santalla said strike action could return in coming weeks after a ‘shameful’ return to low prices.
Worst hit are the dairy strongholds of Northern Spain, in particular Galicia, expected to lose €30-35 per thousand litres.
“It is intolerable,” said Mr Santalla. "Our costs continue to rise and are now back to falling prices for our milk payments.”
“Farmers cannot accept a drop planned by distribution and processing industries which is then approved by the Ministry of Agriculture,” he concluded.