Spain's Dairy Industry Overview
Spain is a prominent player in the global dairy market, producing approximately 7 million tonnes of milk annually, supported by around 800,000 dairy cows. The industry prioritizes quality and innovation to maintain competitiveness.
Dairy Processing and Products
The Spanish dairy processing industry handles over 6 million tonnes of milk each year, producing notable quantities of cheese (320,000 tonnes) and milk powder and whey (100,000 tonnes). Key companies in this sector include Capsa Food, Innolact, Lactalis Iberia, Danone España, and Central Lechera Asturiana.
Export and Import Dynamics
Spain actively engages in the international dairy trade, exporting about 400,000 tonnes of dairy products annually while importing approximately 300,000 tonnes. This dynamic underscores Spain's important role in the global market.
Key Market Events
Recently, a 0.4% increase in milk deliveries is expected by 2024. Corporate movements include Capsa Food's acquisition of a 40% stake in Innolact and Danone's production shift to Romania. Additionally, Lactalis is exploring sustainable packaging, while Galicia is projected to produce 41.6% of Spain's total milk output by 2024.
Industry Challenges
The Spanish dairy industry faces challenges such as a significant reduction in the number of dairy farms, from 145,000 in 1992 to an anticipated 9,500 by 2024. Contributing factors include generational changes, high production costs, adverse weather, and the bluetongue virus, which has resulted in a 2% reduction in milk production.
International Expansion and Sustainability
Noteworthy is Amul's partnership with COVAP as an example of international expansion. More Holstein Farm in Valencia, a Danone supplier, has reduced its carbon footprint by 26% since 2018, highlighting sustainability efforts.
Regulatory and Support Measures
Spain's regulatory framework includes fixed-price contracts to prevent unfair trading practices. Cantabria offers subsidies for local dairy farmers, focusing on terrestrial-based production by 2025. Meanwhile, Nestlé is appealing a €6.8 million fine related to a milk price-fixing cartel case.
Regional Insights
The Valencian Community is experiencing a decline in sheep farms, affecting traditional cheese production. Galicia faces rising costs and decreasing profitability, while Castilla y León, the second-largest producer, contributed 382 million kilograms of milk compared to Galicia's 1,298 million kilograms.
Product Diversification
Danone's expansion into the infant nutrition market with its Blédina brand and the Spanish food industry's negotiation for access to the US market amidst potential tariffs on European products reflect ongoing diversification efforts.
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. Rising costs led to 359 farm closures in Galicia in 2024, with 92 more closures between January and April 2025.
Special Focus
Danone, founded in Barcelona in 1919, remains a key player in Spain's dairy sector. Cheese expert Clara Diéz highlights the potential for matured cheeses for lactose-intolerant consumers and the importance of traditional cheeses.
Market Trends
The Spanish dairy market is seeing a decline in volume and value for producers. By June 2025, milk deliveries had decreased by 1.6% from the previous year, and the average raw milk price dropped to €0.496 per liter, below the EU average.
Health and Safety Concerns
Spanish health authorities have recalled certain cheese products due to Listeria monocytogenes contamination, with AESAN coordinating with European health authorities for product withdrawal.
Laboratory and Quality Assurance
Spain hosts a Super Foods FZCO laboratory conducting sensory, stability, and compliance testing to ensure product quality and alignment with international standards.
Spanish Cheese Sector
The Spanish cheese sector faces both sustainability and innovation challenges, with opportunities for product and process innovation, quality improvement, and enhancing "Brand Spain" internationally. Investment in Castro aims to boost the rural economy and expand dairy offerings in Galicia, with a new plant expected by 2026.
Sheep Milk Sector
The sheep milk sector is experiencing declines in production and prices. In July 2025, the average price of 'standard' sheep milk was €1.198 per liter, a 15.34% decline from July 2024, with production down by 7.16%.
Milestones
Danone celebrates 30 years of its probiotic drink Actimel in Spain. José Sáez assumes the presidency of Spain's liquid milk association, aiming to enhance competitiveness and sustainability.
Genetic Advancements
Galicia leads in dairy genetics, with a CONAFE genotyping program placing four cows from Lugo among Spain's top ten, highlighting Galicia's role in dairy genetics.
Investments
Lactalis has invested €8.86 million in its Spanish plants, creating 889 jobs and collecting over 26 million liters of milk from 83 municipalities.
Innovation and Sustainability
Danone's Valencian plant has become an innovation hub, emphasizing sustainability and renewable energy use. Galicia leads with 41% of national production, contributing significantly to organic milk production.
Health and Disease Management
Spain's first outbreak of bovine contagious nodular dermatitis has prompted urgent sanitary measures. Capsa Food has increased prices, supported by new animal welfare bonuses.
Regulatory Issues
The Spanish Supreme Court halted a mega dairy farm project in Noviercas, Soria, highlighting environmental compliance challenges for large agricultural projects. FeNIL, representing the Spanish dairy industry, secured a preliminary agreement for salary increases and reduced working hours until 2028.
Bluetongue Virus Outbreak
The bluetongue virus has been registered in six new provinces since October 30, 2025, affecting 24 out of 50 provinces since April 1, 2025. The Spanish Agency for Food Safety (AESAN) has issued an alert due to a Listeria monocytogenes outbreak, increasing scrutiny over cheese and other ready-to-eat dairy products.
Modified: 2025/12/13