Milk Production Declines in Galicia as Farms Dwindle
Source: dairynews.today
Milk deliveries are decreasing in Galicia amid a dwindling number of farms, with only around 5,100 operations remaining.
The decline in milk production in Spain, particularly in Galicia, has been a noteworthy trend this year. Between January and March, dairy farmers in Galicia delivered approximately 759,500 tons of milk, representing a 0.78% decrease compared to the same period in 2024, according to the Ministry of Agriculture.
While appearing small, this decrease contrasts with previous years where milk production remained resilient despite a decline in active farms. Various factors contribute to this decline, including ongoing closures of farms. Despite favorable prices that support farm profitability, larger farms find it challenging to maintain production levels. Currently, Galicia hosts merely 5,100 dairy farms, a significant reduction from nearly 15,000 two decades ago. This shortage in farms is often due to a lack of successors for the aging farm owners, who sometimes chose to exit the industry early when faced with lucrative offers for livestock or meat.
Notably, in large farms, regulations now cap the maximum productive capacity at 850 livestock units. Nonetheless, Galicia remains a robust region, producing 40% of Spain's milk. Potential impacts on milk prices are also being discussed, with recent contract renewals leading to mild increases in price per liter, driven by competitive market offerings rather than production declines.
While appearing small, this decrease contrasts with previous years where milk production remained resilient despite a decline in active farms. Various factors contribute to this decline, including ongoing closures of farms. Despite favorable prices that support farm profitability, larger farms find it challenging to maintain production levels. Currently, Galicia hosts merely 5,100 dairy farms, a significant reduction from nearly 15,000 two decades ago. This shortage in farms is often due to a lack of successors for the aging farm owners, who sometimes chose to exit the industry early when faced with lucrative offers for livestock or meat.
Notably, in large farms, regulations now cap the maximum productive capacity at 850 livestock units. Nonetheless, Galicia remains a robust region, producing 40% of Spain's milk. Potential impacts on milk prices are also being discussed, with recent contract renewals leading to mild increases in price per liter, driven by competitive market offerings rather than production declines.
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