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Ministers Review Steps to Dairy Reform

04 February 2013

SPAIN – Government reaction to farmer lobbying over the dairy crisis has resulted in positive steps being made to protect producers and sustain the industry although fears have arisen around short term security of supply.

Speaking at the fourth meeting of the milk committee, Fernando Burgaz, Food Industry Director Genera, said that a full scale dairy supply chain analysis was in progress. Mr Burgaz, who chaired the meeting, confirmed the ministry was working on a collaboration between the production, processing and distribution industries.

The project hopes to fulfil pledges made by the government late last year about implementing a sustainable dairy plan.

Featuring in the scheme is an exploration of transparency in the supply chain. By analysing milk cost inputs and profit the Ministry believe a fair market can be maintained with the help of retail marketing and pricing conformity.

Prices received by dairy farmers through December increased, showing an increase of 0.327 euros/litre to 0.331 euros/litre.

Broader dairy fears centre around supply security. Household dairy consumption increased 4.79 per cent and liquid milk exports have risen 164 per cent.

There have been declines in milk production on the farm (-3.37 per cent), in liquid imports (-12.08 per cent) and in imports of processes products.

Mr Burgaz also discussed the Ministry analysis of consumer patterns and pricing structures across the retail sector.

Based around a benchmark of 60 cents/ litre, 44.7 per cent of all retailers sold milk for under this price. Variation was noted across larger ‘hypermarkets’ with 68.7 per cent of ‘normal shops’ selling milk under the 60 cents benchmark.

TheCattleSite News Desk

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