Dairy Regulations Keep Progressing13 December 2012
SPAIN - The Spanish Government has announced that the dialogue between ministers and the dairy sector has been successful in providing necessary structural reforms.
Despite voices of protests in provincial Spain and questions from the socialist deputy Alejandro Alonso, the Minister of Agriculture, Food and Environment, Miguel Arias Cañete was adamant that if the socialist government had achieved in eight years what the current executive has managed in one the dairy sector would be very different and vastly better.
Mr Cañete recalled the 14,592 farms that the dairy sector lost between 2004 and 2011 and to halt this demise the government have brought out a Milk Package by Royal Decree "that allows the structuring of producer organizations to concentrate supply and create more market bargaining power." Also by Royal Decree is the establishment of state-funded single payment entitlements worth 1,400 euros per farm.
Also a new introduction is the launch of a collaboration agreement with producers, industry and distribution which aims to improve transparency in the market. The draft bill, Minster Cañete added, is awaiting confirmation via the congress of deputies after being already passed by the Council of Ministers.
The Agriculture Minister emphasised that the measures taken are the extent to which the government can interfere with the free market as direct price fixing is out of the question. Despite this the government are confident that a shift will occur rebalancing costs and profits through the supply chain.