PROLEC Against Spanish Milk Contract

EU - On 20 July, the interprofessional dairy association (which is formed by unions, industry, administration and distribution) signed a contract on Spanish milk prices, says the European Milk Board (EMB).
calendar icon 4 August 2009
clock icon 1 minute read

"In that contract it is very clear that Spanish farmer will receive a medium milk price 0,30-0,31 euros/litre, during the next six months (until December)," says the EMB.

"The document explains clearly that the reference market, in order to fix a milk price, will be the French dairy market, so Spanish industry will increase the French medium milk price 3 cents, that means the final medium milk price will be 0,30-031 euros/litre."

PROLEC and the independent milk farmers’ organizations are against that agreement, because production costs are around 0,37 euros/litre, so that price is not a covering cost price.

Anyway, if industry takes French market is because prices are lower than Spanish prices, says EMB. That’s why PROLEC made a manifest against that contract and that milk price and that manifest was delivered to the Spanish agricultural minister, in order to find a solution to the milk prices crisis.

Now, the whole dairy sector is divided. Some unions are on the side of the contract and some are not. PROLEC is against it, because the Spanish producer is under the industry pressure, as usually and because of the reference market.

TheCattleSite News Desk

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