Policy Markets

Regional Council Announce Farmgate Price Rise

SPAIN - The Galician regional council (Xanu) have said they will guarantee a farmgate milk price rise from current prices of 29 cents per litre up to 36 c/l following weeks of unrest in the dairy sector over processors' prices.

11 December 2012

1 minute read

Europe

The Galician government has guaranteed the region's Dairy farmers a price rise of around 6 cents a litre after months of unrest amongst the farming community which included demonstrations, a milk strike and culminated in a demonstration near Brussels.

It is one of the first actions of Alberto Nunez Feijoo after taking up his second term in office after winning the recent regional elections. The regional Galician executive brought together the three agricultural unions to sign a joint document which includes a price increase from January. The Young Farmers Union, The Spanish Union Agriculture and The Farmers Union of Labrego Galego were all in agreement over the price guarantee document.

Spanish newspaper El Mundo reported that the response of the government has made it clear that the plight of the dairy farmers is a priority issue for the Galician government. The document was embellished with political comments about how the dairy market problems could be rectified.

As well as the increase in milk prices the document also laid out plans to outlaw large supermarkets from selling milk at loss and introduced a policy change to allocate more land to farmers to grow fodder.