Allegations of Price Discrimination in Spain's Dairy Industry
Source: dairynews.today
Unións Agrarias accuses dairy industries of giving higher prices to large farms, leaving smaller ones with a difference of up to 7 euro cents per liter.
The dairy sector in Spain is witnessing growing discontent as Unións Agrarias (UUAA) has raised concerns over the industry's pricing strategies.
The union claims that during negotiations for renewing dairy contracts, which must be signed by early April, a "clear strategy" has emerged where larger farms are offered higher milk prices to the detriment of smaller farms.
The discrepancy has reportedly reached between 6 to 7 euro cents per liter, while the majority of smaller farms might only see increases of half a cent, if at all.
Oscar Pose, responsible for the dairy sector at UUAA, insists that larger farms are unfairly favored, stating, "No lo vamos a permitir," implying the union will not allow this to continue.
Pose argues that the industry should correct the price differential, which stands at around 4 cents per liter currently, by raising prices for all Galician farms, not just the large ones. If the offers from this negotiation are confirmed, this differential could climb even further, putting additional strain on smaller producers.
The accusations point to an ongoing struggle within Galicia’s dairy sector, already bearing multiple challenges, as highlighted by Pose's claim that such strategies "es profundizar todavía más en la herida," deepen the wounds of the sector. The disparity between large and small farms, which currently stands at 4 to 5 cents per liter, could increase due to this discrimination in pricing.
The union claims that during negotiations for renewing dairy contracts, which must be signed by early April, a "clear strategy" has emerged where larger farms are offered higher milk prices to the detriment of smaller farms.
The discrepancy has reportedly reached between 6 to 7 euro cents per liter, while the majority of smaller farms might only see increases of half a cent, if at all.
Oscar Pose, responsible for the dairy sector at UUAA, insists that larger farms are unfairly favored, stating, "No lo vamos a permitir," implying the union will not allow this to continue.
Pose argues that the industry should correct the price differential, which stands at around 4 cents per liter currently, by raising prices for all Galician farms, not just the large ones. If the offers from this negotiation are confirmed, this differential could climb even further, putting additional strain on smaller producers.
The accusations point to an ongoing struggle within Galicia’s dairy sector, already bearing multiple challenges, as highlighted by Pose's claim that such strategies "es profundizar todavía más en la herida," deepen the wounds of the sector. The disparity between large and small farms, which currently stands at 4 to 5 cents per liter, could increase due to this discrimination in pricing.
