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Dairy Markets Will Ruin Spanish Farms

20 November 2014

SPAIN – Any delay in activating dairy sector crisis measures will ruin many Spanish businesses in light of worsening milk supply and demand dynamics, the European Commission has been told.

“Exceptional measures” have been demanded immediately by Spanish producer group the Union of Small Farmers and Ranchers (UPA).

Spanish farmers are blaming the Russian import veto and a rise in production in some member states for a “flooded market”.

Milk prices have fallen 15 per cent since March, according to the UPA, adding that Galician prices are down over 20 per cent.

Particular pressure is felt on cheese contracts, said UPA livestock secretary Roman Santella.

He blamed low-priced cheese in France, Germany and Holland.

"We are facing a clear example of dumping distortions in our market, "said Mr Santalla.

“China has also lowered demand as leverage to buy whole milk powder and butter at a lower price.

“Furthermore, increases in production of up to 5 per cent in surplus countries like France, Germany, Holland and Ireland dragged prices down and make Spanish farmers "fear the worst" 2015."

TheCattleSite News Desk



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