Speculation Threatens Manchego Cheese: Milk Prices Surge

The Manchego cheese industry in Spain is facing a crisis as speculation in sheep and goat milk prices has driven up costs, according to ASAJA Castilla-La Mancha. The organization's president, José María Fresneda, attributes the issue to "artificial increases in milk prices," which have led to unaffordable consumer prices for cheese.

The demand for Manchego cheese has decreased by more than 20% as a result of high prices, while milk production has increased by over 15% due to its high value. Fresneda explains that the situation has resulted in an oversupply of milk, with larger dairies unable to resolve the issue for all farmers. Speculators who benefitted initially have now exited the market, causing further instability.

ASAJA has been advocating for a Strategic Livestock Plan and a cost observatory to secure basic farmer profitability, but no responses have been received from the agricultural authorities. The organization is urging for a collaborative approach from the Ministry of Agriculture and others to address the ongoing crisis and protect the region's agricultural heritage, including the prized Manchego cheese.

In addition to market pressures, farmers face challenges such as rising production costs, a lack of generational continuity, and a shortage of skilled labor.