Spanish Farmers Warn of Potential Mass Closure Due to Sheep Milk Price Drops

The Union of Farmers of Castilla y León (UCCL) has sounded the alarm over the plummeting prices of sheep milk, cautioning that at least half of the region's farms might be forced to shut down if the current trend continues. This announcement was made during a public demonstration outside the Ministry of Agriculture, Livestock, and Rural Development in Valladolid.

Warning from UCCL

José Antonio Martínez, the head of UCCL's sheep and goat sector, emphasized the seriousness of the situation, stating that the price reductions are so severe that many producers cannot cover their production costs. As it stands, the cost to produce a liter of milk is approximately 1.4 euros, yet market prices threaten to fall to as low as 0.90 euros per liter in April.

Industry Stance and Producer Struggles

Coordinating General Jesús Manuel González Palacín has expressed frustration with the dairy industry's unwillingness to negotiate. He criticized the industry's pricing as an unsupported market imposition. Despite a strong market for cheese, the current prices are unsustainable for producers.

The UCCL has been proactive, organizing multiple demonstrations to press the government and industry to take immediate and effective actions to address these challenges.

Government Response

The Junta de Arbitraje y Mediación in Castilla y León has started a mediation procedure between sheep milk producers and the dairy industry, as reported by the Ministry of Agriculture, Livestock, and Rural Development. However, UCCL remains skeptical of this mechanism's efficacy, preferring action that will secure commitment from the industry.

The situation calls for immediate intervention from María González Corral, the regional Agriculture, Livestock, and Rural Development Minister, according to UCCL, who argue that the future of the sheep farming sector in Castilla y León is at risk.