Overview of Spain's Dairy Industry

Spain is a significant contributor to the global dairy market, producing approximately 7 million tonnes of milk annually. This production is supported by around 800,000 dairy cattle, with a strong emphasis on quality, tradition, and innovation in its practices.

Dairy Processing and Products

The Spanish dairy processing sector manages over 6 million tonnes of milk each year, resulting in key products such as 320,000 tonnes of cheese and 100,000 tonnes of milk powder and whey. Leading companies in the sector include Capsa Food, Innolact, Lactalis Iberia, Danone España, and Central Lechera Asturiana.

Export and Import Dynamics

Spain is an active participant in international dairy trade, exporting about 400,000 tonnes and importing around 300,000 tonnes of dairy products annually. This underscores its robust presence in the global market.

Key Market Events

Significant developments in the industry include a projected 0.4% growth in milk deliveries by 2024 and Capsa Food's acquisition of a 40% stake in Innolact. Notably, Danone is relocating yogurt production to Romania, while Lactalis is introducing sustainable packaging solutions. Galicia is anticipated to contribute 41.6% of Spain's total milk production in 2024.

Industry Challenges

The number of dairy farms has dramatically decreased from 145,000 in 1992 to just 9,500 in 2024, largely due to generational changes and insufficient rural support. Production costs exceed sale prices, and there is a noted decline in sheep and goat milk deliveries. Additionally, adverse weather conditions and the bluetongue virus have caused a 2% reduction in milk production.

International Expansion and Sustainability

Amul's entry into the Spanish market through a partnership with COVAP marks a significant international expansion. Additionally, More Holstein Farm in Valencia, a Danone supplier, has achieved a 26% reduction in its carbon footprint since 2018.

Regulatory and Support Measures

Spain's regulatory framework includes fixed-price contracts to prevent unfair trading practices. Cantabria has introduced subsidies to support local dairy farmers, with a focus on terrestrial-based production by 2025. Nestlé is contesting a €6.8 million fine related to a milk price-fixing cartel case.

Regional Insights

The Valencian Community has experienced a significant reduction in sheep farms, impacting traditional cheese production. Galician farmers face rising costs and diminishing farm profitability. Castilla y León, the second-largest milk producer, has seen a decline in production, contributing 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 to avoid losing access to the US market due to a proposed 30% tariff 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/liter. Rising costs across Europe are affecting profitability, with 359 farms closing in Galicia in 2024 and another 92 closures between January and April 2025.

Special Focus

Danone, founded in Barcelona in 1919, plays a significant role in the industry. Cheese expert Clara Diéz highlights the potential of matured cheeses for lactose-intolerant consumers, emphasizing the importance of traditional cheeses in Spain.

Conclusion

The dairy industry in Cantabria faces a critical moment with the loss of 400 dairy farms, attributed to low profitability, generational shifts, and excessive bureaucracy. The Spanish market remains diverse, with leading brands like Central Lechera Asturiana and Pascual committed to tradition and innovation. Castilla y León is re-evaluating its ovine sector to boost efficiency and profitability, generating over €500 million in economic value in 2022.

A Milk Brand Is Banned Due to Commercial Conflict

Central Lechera Asturiana has been banned from Alimerka supermarkets due to a commercial disagreement, affecting farmers and consumers. The Spanish Supreme Court upheld a €6.86 million fine against Nestlé for involvement in a milk cartel, highlighting the need for transparency and fair competition. León experiences a significant rise in sheep and goat milk prices, indicating strong demand and the significance of small ruminant production in this region.

Health Authorities Order Withdrawal of Contaminated Products

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) has initiated protocols in coordination with European health authorities to ensure the immediate withdrawal of the affected products from the market.

Mineral Deficiencies in Grazing Pastures

Veterinary professionals have raised concerns over inadequate mineral content in the diets of semi-extensive grazing systems in Spain, affecting livestock health and productivity. The deficiency of trace elements like selenium, copper, iodine, zinc, and cobalt is particularly severe, impacting farm profitability.

Exports to Spain increased by 40% to £35 million.

Modified: 2025/09/01


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