Dairy Crisis Causing Farm Closures

SPAIN - During the last year over five hundred milk-producing farms in Galicia have been hit by a severe economic crisis. Around 12 farms have been disappearing a week as a result of the crisis. Galicia now counts some 10,648 farms, three times less than it was ten years ago, according to data provided by "La Voz de Galicia".
calendar icon 2 August 2012
clock icon 1 minute read

Most of the closures that occurred since 2000 were due to the infeasibility of small family farms. Over ten thousand farms that remain are now facing severe liquidity problems.

This month, farmers were paid for milk an average price of 0.285 euros per liter, between two and three cents less than the state average and a value less than 2001, before the introduction of the euro.

Analyzing the evolution of farms in the last decade shows that there are steep drops in years of lesser crisis. This is explained by the natural process of converting small family farms and also the crisis of urban unemployment. "There are young unemployed men in the city returning to the farm, farms that are being kept for subsistence," explains Javier Iglesias, a spokesman for livestock Agricultural Unions.

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