Central Lechera Asturiana, Pascual, Puleva (Lactalis group) and Leche Río pay farmers the highest milk prices in all of Europe, just behind Malta and Cyprus. The prices of milk of European origin have gradually decreased in recent months and, although the reductions are also seen in Spain, they are not as significant as in our surroundings. country.
According to data from the Milk Market Observatory of the European Commission, in August 2023 the price of the origin of cow’s milk in Spain is 0.51 euros per kilogram, more than other countries such as Germany, where 0. 41 euros per kilogram; France, 0.45 euros; Netherlands with 0.43 euro, Poland with 0.41 or Ireland with 0.39. In addition, the average in the European Union is also lower. Specifically, 0.43 euros per kilo.
In Spain, the price of milk is almost 19% above the European average, which causes the sector to lose competitiveness compared to the rest of the dairy suppliers in the European Union and also at the national level. Since the end of 2019, and according to the report from the Ministry of Agriculture, Fisheries and Food, the price of cow’s milk has increased by 81.2% in Spain, from having a value of 0.32 euros per kilogram to having a value of 0.58. euro by the end of 2022.
One of the most affected companies is Central Lechera Asturiana, considering that it is a cooperative and the owners are the owners of 900 livestock farms, so they set the prices. In fact, as the sector explains, the company run by José Armando Tellado is the one that pays the highest price for milk in all of Spain.
Rise of supermarkets
The immediate consequence of this increase in source prices is an increase in the sector’s trade deficit and also a sharp increase in supermarket prices. The price of whole milk increased by 13% last year, skimmed milk by 11.3%, butter by 11.1%, cheese by 9.2% and yogurt by 8%.
The National Federation of Dairy Industries (Fenil) also assured that this price increase also occurred at the same time as production decreased. “In the European Union, milk production has increased significantly in countries such as Germany, the Netherlands, Poland and Belgium, while there has been a decrease in southern countries such as France, Spain and Italy, among others,” explained Luis Calabozo . , general director of the employer’s association. According to him, there are, in fact, “structural factors beyond the price, which condition the evolution of milk production in Spain, such as the lack of incentives and difficulties in accessing financing, investment or attracting work, in addition to the current regulation. framework that slows down the creation of large farms.”
Specifically, in the first eight months of the year, the production of cow’s milk decreased to 4.97 million tons, representing a decrease of 0.2% compared to last year. Sheep production decreased by 4.9%, to 323,034 tons and goat production by 6.3%, to 295,308 tons. In Spain, although the consumption of liquid milk increased slightly, by 1.1%, to 1.2 million tons, that of cheese fell by 0.4% and of yogurt registered a decrease of 4, 7%.
From the sector
According to the report of the European Commission, it is necessary to recover competition to guarantee access to this product for consumers. “The price of milk has decreased because the tensions of production costs, especially feed and energy, have been controlled. Although we will see how long this situation will last,” said the head of the dairy sector. of Coag, Gaspar Anabitarte. However, beyond milk prices, the sector now has a new concern. “We are worried about the low demand for milk. There is a decrease because the industries do not want us to send them,” confirmed Anabitarte. On the other hand, Coag also pointed out that “we managed to get the farmers to charge more for their milk product and this is thanks to the law of the chain.” On the other hand, the UPA demanded “reasonable prices, because milk has not been well paid for many years. This makes the profession unattractive for the younger generation.” In which he added that “the Government must take care of the internal market.”
