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Marketing Strategy to Build on Milk Package Improvements

27 March 2013

SPAIN – Government ministers have heralded recent dairy reforms as a success and say there more improvement is possible through national marketing strategy.

The ‘Milk package’, the name given to the tranche of reforms, was introduced late last year to help producers survive against rising production costs, market inequality and unhelpful contracts with processors discounting milk at a loss in supermarkets.

This is according to Food Industry director general, Fernando Burgaz who said the Ministry is doing a ‘very serious job of monitoring prices in the dairy sector’.

In this regard, he explained that, "We have recently detected an increase in prices paid to farmers and, hopefully, through formalisation of contracts between farmers and industry can take this momentum along the coming months.”

Over 60 per cent of farms have already formalized their contracts with buyers, which Mr Burgaz stressed is hugely positive news.

On top of contract and market reforms the production and logistics elements of the industry are in need for innovation and efficiency, added Mr Burgaz who has been working with Young Farmers Groups, Food Cooperatives and the group for Efficiency and Value in Milk Marketing and Dairy Product Chains.

Further to improving the way milk is produced and transported Mr Burgaz stresses that extensive marketing and promotional activities will be on-going as part of the ‘Sustainable Dairy Programme’ signed in February.

Through labelling and logo strategies the government hopes to promote Spanish milk as a high quality product with provenance. This, Mr Burgaz concluded is another element to ensure dairy sustainability.



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