SPAIN – Government officials have announced that the Spanish dairy chain has turned a corner, although that research and innovation is required to sustain the sector long term.
Discussions between dairy processors, hauliers and policy makers took place last week, revealing an increase in average farmgate prices to €0.349 in August.
The government said the package had been implemented by a third of Spain's processors and that the ‘milk package’ was beginning to take a positive effect on milk sales and how dairy products are sold.
Food Minister, Fernando Burgaz, chaired the second Dairy sector discussion forum last week, at which, August data was analysed by leading figures from milk processing and transport companies.
Mr Burgaz presented a report of the dairy price observatory and revealed plans for a Convention on the Collaboration Implementation and Development of a Sustainable Dairy Programme.
Farm businesses and supply chains relations hope to be maintained through a series of television campaigns and wider marketing. The convention is to open this week.
Meanwhile, the importance of development and innovation was voiced at the second Spanish dairy sector forum.
Addressing the delegates, Secretary General for Agriculture and Food Isabel Garcia Tejerina said: “The Ministry strongly believes in development and innovation. These are two pillars which will ensure the future of dairy.”
She added that exports will be key in adapting to a more liberal, post-quota market. "Increasing our presence in foreign market is essential because, in addition to contributing to our business growth, competition can be driven by innovation."
In this regard, Mrs Tejerina confirmed an €8million subsidy line, to be granted over three years.
Achieving competitiveness on a global level has been outlined in the document Strategic lines in Agri-Food Internationalisation which has called on cooperation across the government.