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Agreement Aims to Put Balance Back in Milk Chain

14 February 2013

SPAIN – An agreement has been signed between the ministry and major milk processing and delivery companies to promote an efficient and sustainable milk value chain as part of the ‘milk plan’, a government policy to safeguard Spanish dairy farmers.

Signatories to the agreement pledge to cooperate within the market framework to achieve a dairy market that does not ‘destroy’ the value of milk. Low farmgate prices were crippling the industry as supermarkets sold milk at discount prices as a loss leader to tempt consumers.

Signed between Arias Canete, the Minster for Agriculture, Food and Environment, 14 dairies and 9 distribution companies the ‘convention’ includes the introduction of the ‘sustainable dairy’ logo.

Aimed at marketing Spanish milk and specifying origin whilst also enhancing consumer awareness the ‘sustainable dairy’ marketing initiative promotes milk as a nutritive food stuff.

The government’s main objective is to prevent the further dismantling of Spain’s dairy farms. A decade of decline has beset the sector and recently strikes, protests and lobbying highlighted the need for change.

The ‘Royal Dairy Decree’- signed on 28 September- underpins the convention ratification by strengthening the bargaining power of producers. By creating producer organisations supply will be concentrated allowing for fair milk prices to be paid in line with cost of production.

TheCattleSite News Desk



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