SPAIN – Current government measures to steer Spain's dairy sector towards stability are falling short of the mark, according to farming leaders demanding a minimum farmgate price.
The Coordinator of Farmers and Ranchers Organisations (COAG) has dismissed present government drafted agreements as “very generic”, leaving farmers open to the “goodwill” of the supply chain.
They demand “urgent measures”, including a minimum milk price as headline issue as part of 13 requests to save farm businesses. This has been snubbed as unconstitutional by the Spanish government, which has ruled out a minimum price and rubbished claims that French farmers have been offered a bottom to the market.
- COAG says French ministers have brought in a minimum milk price and want one too. Spanish ministers say no such thing is allowed due to market competition laws.
- Revise butter and milk intervention prices at EU level.
- Tighter monitoring of the supply chain and scrutiny of laws on pricing.
- Standardise milk quality – regional standards for fat, protein, freezing point.
- Improve business stability by extending minimum contract durations.
- Call into account dairies offering contracts shorter than one year in length
- Better promotion of local milk products
- Question all retailers displaying the Sustainable Dairy Products logo – Some show logo despite not meeting requirements, COAG says.
- Create a specific “mediator” for the dairy sector to intervene in price disagreements.
- Interest subsidy for loans
- Reduce social security contributions
- Review income tax paid on milk sales.
- Financial compensation through public funding of up to 95 per cent of average production cost €338 per tonne.
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