Dairy Farmers in Galicia Suffer Significant Losses Due to Price Drop
Dairy farmers in Galicia have faced considerable financial setbacks in April, as reported by Unións Agrarias based on data from Spain's Ministry of Agriculture. The average price paid to Galician producers plummeted to 46.10 cents per liter from 52.40 cents in March, representing a near 12% decline in just a month. Galicia has thus become one of the most affected regions in Spain by the falling milk prices.
The agrarian union highlighted that the gap between the prices received by Galician producers and the national average has widened. Previously around two cents per liter, this gap has now increased to approximately five cents. Comparisons with other regions show even larger disparities: producers in the Basque Country receive up to ten cents more per liter, while in Valencia and Asturias, the differences are 9.6 and eight cents more, respectively.
Despite being Spain's leading milk-producing region, Galicia is enduring the most severe price drops. Larger farms, particularly those producing over 700,000 kilograms annually, are feeling the impact acutely. Many of these farms had invested heavily in expansion at the industry's behest and are now struggling to meet financial obligations with reduced revenues.
Unións Agrarias estimated that Galician producers missed out on approximately €17 million in April compared to the previous month. The organization criticized some industry strategies aimed at pushing for general price reductions without clear market-related reasons.
In response to the crisis, a new study commission is set to be established in the Galician Parliament to examine the dairy sector's situation and industry practices. Alongside these concerns, Unións Agrarias evaluated the PAC campaign in Galicia, noting its role as a leading advisory entity for aid processing. However, they criticized the increasing bureaucracy, especially the requirement for extensive documentation to validate leased lands.
The organization called for simplified procedures and urged that the upcoming PAC reform include more efficient mechanisms for producers, particularly in regions like Galicia characterized by small landholdings and fragmented parcels.
