Spanish Dairy Sector Faces Decline in Prices and Production
The Spanish dairy sector is currently facing one of its most challenging periods in recent years. According to data from the Ministry of Agriculture, Fisheries and Food of Spain, the volume of cow's milk sold by producers decreased in April 2026 to 647,442 tons, accompanied by a drop in the average price to 0.489 euros per liter. This is a decline from the 667,960 tons sold in March at 0.534 euros per liter.
The simultaneous decrease in both volume and price led to a significant reduction in the sector's revenues. In March, the total revenue reached 356.69 million euros, while in April, it fell to 316.99 million euros.
Regions such as Galicia and Castilla y León, which are major dairy producers in Spain, were particularly affected. In Castilla y León, milk was sold at an average price of 0.498 euros per liter in April, down from 0.551 euros in March, leading to a monthly revenue loss of over 7 million euros. In Galicia, the price drop exceeded six cents per liter, and sales volume decreased by nearly 8,000 tons, resulting in a decline in revenue from 110.25 million euros in March to 93.40 million euros in April.
Producers have pointed to industrial pressures during contractual negotiations as a contributing factor. The perishable nature of milk puts producers at a disadvantage when dealing with processing industries, which influence purchase prices. Furthermore, agricultural organizations have reported that part of the reduced demand for domestic milk has been offset by imports of raw milk from the Netherlands, Germany, and France, exacerbating the economic challenges for many dairies.
The sector has also seen a rapid decline in the number of dairy farms. Between April 2025 and April 2026, Spain lost 508 dairy producers, reducing the number of active farms from 9,107 to 8,599. Galicia experienced the most significant decrease, with 304 fewer farms, while Castilla y León and Cantabria lost 27 and 50 farms, respectively. This trend signals a consolidation and structural reduction within the Spanish dairy industry.
