Overview of Spain's Dairy Industry

Spain is a major contributor to the global dairy market, with an annual milk production of approximately 7 million tonnes. The industry is supported by around 800,000 dairy cattle, indicative of the country's strong agricultural practices.

Dairy Processing and Products

The Spanish dairy processing sector is well-developed, handling over 6 million tonnes of milk each year. This industry produces about 320,000 tonnes of cheese and 100,000 tonnes of milk powder and whey. Key enterprises include Capsa Food, Innolact, Lactalis Iberia, Danone España, and Central Lechera Asturiana.

Export and Import Dynamics

Spain is actively engaged in international dairy trade, exporting approximately 400,000 tonnes and importing around 300,000 tonnes of dairy products annually. This highlights Spain's competitive presence in the global market.

Key Market Events

Several significant events are shaping Spain's dairy industry. Milk deliveries are projected to grow by 0.4% in 2024. Capsa Food's acquisition of a 40% stake in Innolact is a sign of industry consolidation. Danone's relocation of yogurt production to Romania and Lactalis's introduction of sustainable packaging are notable developments. Galicia is expected to contribute 41.6% of the total milk production in 2024.

Industry Challenges

The number of dairy farms has decreased significantly from 145,000 in 1992 to just 9,500 in 2024, due to a lack of generational transition and rural support. The industry also faces challenges such as production costs exceeding sale prices and declining sheep and goat milk deliveries. Additionally, Spain experienced a 2% decrease in milk production due to unfavorable weather conditions and the bluetongue virus.

International Expansion and Sustainability

Amul has launched fresh milk products in Spain through a partnership with Cooperativa Ganadera del Valle de los Pedroches (COVAP). More Holstein Farm in Valencia, a supplier for Danone, has successfully reduced its carbon footprint by 26% since 2018.

Regulatory and Support Measures

Spain has implemented mechanisms like fixed-price contracts to prevent unfair trading practices. Cantabria has introduced subsidies to support local dairy farmers, focusing on terrestrial-based production by 2025. Nestlé is currently contesting a 6.8 million euro fine related to a milk price-fixing cartel case.

Modified: 2025/05/18

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