Spanish milk producers seek greater negotiating power
Unión de Uniones de Agricultores y Ganaderos submitted observations during a public consultation on amending Royal Decree 95/2019, which governs contractual relations between milk producers and the dairy industry. The agriculture ministry opened the preliminary consultation on September 29 and closed it on October 14, 2026.
The ministry says the process is intended to prepare a future royal-decree bill that would update Spain’s dairy package in line with changes to European Union rules. No new parliamentary rules have been approved at this stage. The administration is collecting positions before drafting the text.
Under the current framework, first buyers must give producers a written contract proposal before supplies begin. The offer generally has to be made at least two months before the existing agreement ends, or two months before deliveries start in a new commercial relationship. It must normally provide for a minimum term of one year and state the main conditions of the relationship. Producers may accept or reject it.
Unión de Uniones says the existence of a formal offer does not necessarily create effective bargaining power. Milk is perishable and must be collected regularly, while a farmer’s ability to refuse an offer depends on whether another processor is able and willing to take the production. The organisation said this choice can be limited in some areas. “The industry comes and puts the contract in front of us to sign, and if we do not, it does not collect our milk. Where is the negotiation?” it said.
Prices must also comply with Spain’s food-chain law. Where a variable price is used, the formula may include market, volume and quality indicators, but it must take relevant production costs into account, including feed, energy and fuel. Unión de Uniones said diesel, feed and fodder costs had risen during 2026 while milk prices had fallen in several months. The organisation has called for stronger tools for producers and their organisations, although its public communication does not list all the specific amendments submitted to the ministry.
The discussion is taking place as Spain’s dairy sector has fewer producing farms. Ministry data showed 8,661 cattle farmers with declared deliveries in April 2026; other official statistics put the figure at about 8,425 in August. Unión de Uniones said an average of 1.5 dairy-cattle farms had closed each day during the preceding year, while sheep and goat farms had also continued to disappear. Total milk output has not fallen in the same proportion because the remaining farms tend to be larger and more productive.
The dairy package also covers producer organisations, which are intended to help farmers combine volumes and negotiate collectively. The ministry regards those arrangements as an advance in improving producers’ bargaining position, while farm organisations say a gap remains between the legal framework and its operation in practice. The consultation therefore concerns not only whether milk deliveries are covered by written contracts—a requirement already in force—but also whether their terms are genuinely negotiable and whether producer organisations have sufficient weight in discussions with industry.
