Dairy Production Decline in Castilla y León Amidst Economic Challenges

The dairy industry in Castilla y León is grappling with a notable production decline of approximately 2.87% between January and May 2025 compared to the previous year, surpassing the national decline of 1.72%. This reduction amounts to a significant loss of 11,289 tons of dairy output within the region. As the second-largest milk producer in Spain, Castilla y León contributed 382 million kilograms, trailing only Galicia's 1,298 million kilograms. Nationally, the total stood at 3,154 million kilograms.

Farmers' organizations like UPA, UCCL, and Agaprol highlight the alarming disparity between milk prices and production costs, with Castilla y León's rate at €0.511 per liter, slightly above the national average of €0.501, yet still lagging behind European counterparts by 5 to 7 cents. Small scale operations face further strain, receiving up to €0.09 less per liter compared to larger counterparts. The ovine and caprine sectors mirror this downturn; goat milk decreased by 7.68% and sheep milk by 5.21% this year, with May drops of 9.7% and 6.13% respectively pointing to a sustained downward trend.

Current prices (€0.925/l for goat and €1.202/l for sheep) remain below the estimated production costs (€1.40–1.50/l), forcing numerous farm closures — 357 goat farms and 320 sheep farms. Amidst these ongoing challenges, UCCL and allied organizations are pressing for urgent intervention by the Ministry of Agriculture to ensure market transparency and regulate fair contract signings before the crucial July 31 renewal deadline. Increased temperatures — June being historically warm — compound these difficulties, potentially impacting autumn production further.