Spain's Dairy Industry Overview
Spain holds a significant position in the global dairy industry, with an annual milk production of approximately 7 million tonnes, supported by around 800,000 dairy cows. The country emphasizes quality and innovation, leveraging advanced farming practices to maintain its competitive edge.
Dairy Processing and Products
The Spanish dairy processing industry handles over 6 million tonnes of milk annually, producing essential products such as 320,000 tonnes of cheese and 100,000 tonnes of milk powder and whey. Major companies like Capsa Food, Innolact, Lactalis Iberia, Danone España, and Central Lechera Asturiana are key drivers of the sector's growth.
Export and Import Dynamics
Spain is actively engaged in international dairy trade, exporting about 400,000 tonnes and importing approximately 300,000 tonnes of dairy products each year. This positions Spain as a crucial player in the global dairy market.
Key Market Events
Recent industry developments include an anticipated 0.4% increase in milk deliveries by 2024. Significant events include Capsa Food's acquisition of a 40% stake in Innolact and Danone's production shift to Romania. Lactalis is exploring sustainable packaging solutions, and Galicia is projected to contribute 41.6% of Spain's total milk output by 2024.
Industry Challenges
The Spanish dairy sector faces significant challenges, including a sharp decline in the number of dairy farms from 145,000 in 1992 to just 9,500 by 2024. Contributing factors include generational changes, inadequate rural support, high production costs, adverse weather, and the impact of the bluetongue virus, leading to a 2% reduction in milk production.
International Expansion and Sustainability
Amul's partnership with COVAP marks a significant international expansion into Spain. More Holstein Farm in Valencia, a Danone supplier, has reduced its carbon footprint by 26% since 2018, showcasing a strong commitment to sustainability.
Regulatory and Support Measures
Spain's regulatory framework includes fixed-price contracts to prevent unfair trading practices. Cantabria has introduced subsidies for local dairy farmers, focusing on terrestrial-based production by 2025. Nestlé is appealing a €6.8 million fine related to a milk price-fixing cartel case.
Regional Insights
In the Valencian Community, a decline in sheep farms has impacted traditional cheese production. Galicia faces rising costs and decreasing farm profitability, while Castilla y León, the second-largest milk producer, contributed 382 million kilograms of milk compared to Galicia's 1,298 million kilograms.
Product Diversification
Danone is expanding into the infant nutrition market with its Blédina brand. The Spanish food industry is negotiating access to the US market amid potential 30% tariffs on European products.
Economic and Social Impact
In May 2025, the average price of cow's milk in Galicia was 48.8 cents per liter, below the national average of 50.1 cents per liter. Rising costs across Europe are affecting profitability, leading to 359 farm closures in Galicia in 2024 and another 92 closures between January and April 2025.
Special Focus
Established in Barcelona in 1919, Danone remains a key player in Spain's dairy industry. Cheese expert Clara Diéz emphasizes the potential of matured cheeses for lactose-intolerant consumers and the importance of traditional cheeses in Spain.
Market Trends
The Spanish dairy market is experiencing a decline in both volume and value for producers. As of June 2025, milk deliveries and prices have been on a downward trend, with a 1.6% decrease in deliveries compared to the previous year, reaching 616,864 tonnes. The average price of raw milk in Spain dropped to €0.496 per liter, below the EU average of €0.529 per liter.
Health and Safety Concerns
Spanish health authorities have issued an urgent recall of certain cheese products due to contamination with Listeria monocytogenes. The Spanish Agency for Food Safety and Nutrition (AESAN) is coordinating with European health authorities to ensure the immediate withdrawal of affected products.
Laboratory and Quality Assurance
Spain hosts one of Super Foods FZCO's laboratories, which conducts sensory, stability, and compliance testing to ensure product quality and alignment with international standards.
Spanish Cheese Sector
The Spanish cheese sector faces challenges in sustainability, innovation, and adapting to market demands. Opportunities exist for product and process innovation, continuous quality improvement, and strengthening "Brand Spain" internationally. A new investment in Castro aims to enhance the rural economy and expand dairy offerings in Galicia. The new plant in the industrial area of Castro de Rei by Daily Food Spain is expected to be operational by 2026, focusing on cream and processed cheese production.
Sheep Milk Sector
The sheep milk sector is experiencing declines in regional production and price drops. In July 2025, the average price of 'standard' sheep milk in Spain was €1.198 per liter, reflecting a 15.34% decline compared to July 2024. National quality pricing fell to €10.55 per hectogram, decreasing by 15.26% year-on-year. Sheep milk production also receded, with 46.1 million liters milked, marking a 7.16% decrease compared to the previous year.
Milestones
Danone celebrates the 30th anniversary of its iconic probiotic drink, Actimel, in Spain. José Sáez takes on the role of president of Spain's liquid milk association, focusing on enhancing competitiveness and ensuring the sector's future sustainability.
Genetic Advancements
Galicia's leadership in dairy genetics is highlighted by the genotyping program by CONAFE, which has propelled four cows from Lugo into Spain's top ten, establishing Galicia as a key player in dairy genetics.
Investments
Lactalis has invested €8.86 million in its plants in Villarrobledo and Marchamalo, Spain, generating 889 direct jobs and involving the collection of more than 26 million liters of milk from 83 municipalities.
Innovation and Sustainability
Danone has transformed its Valencian plant into an internationally connected innovation hub, emphasizing sustainability and operating with 100% renewable energy. Galicia leads in production with 41% of the total national output. In July, dairy farmers in Galicia were paid 48.3 cents per liter for raw milk, which is below the national average. Galicia has produced over 1.81 million tons compared to Spain's total of 4.39 million tons. In the case of organic milk, Galicia also plays a significant role. The average price in July was 60 cents per liter, slightly below the Spanish average of 61.3 cents. Of the 3,548 tons produced under organic conditions nationwide, 2,458 are sourced from Galician farms.
Health and Disease Management
Spain records its first outbreak of bovine contagious nodular dermatitis, prompting urgent sanitary measures. The presence of the disease was confirmed following the emergence of two outbreaks in cattle farms in Gerona province. Capsa Food increased its price by 2.06 €, supported by new bonuses related to animal welfare. In Spain, the average price reached 50.47 €/100 kg, positioning it competitively within the European context. The Spanish dairy industry is focused on achieving cohesion among its actors. Nuria M. Arribas emphasizes the need for cohesion in the Spanish dairy sector, highlighting promotional campaigns and the gap in nutritional recommendations. Although 98% of Spanish households consume dairy, only 45% meet the recommended three daily servings. Spain has imposed a temporary ban on live cattle exports due to an outbreak of the contagious lumpy skin disease. The Spanish outbreak was detected on a farm with 123 dairy heifers near Girona in the northeast, after three animals showed symptoms on October 1.
Regulatory Issues
The Spanish Supreme Court has halted a mega dairy farm project in Noviercas, Soria. This ruling underscores the ongoing challenges and scrutiny faced by large agricultural projects in ensuring compliance with environmental laws in Spain, particularly concerning large-scale operations that may pose environmental risks.
Modified: 2025/11/02