Spain: A dismal year without milk quotas
On the first anniversary of the removal of milk quotas balance is disastrous, according to COAG: prices ruin the farmer, mass closure of farms, industries that “negotiate” based on blackmail and those who are seated in the large centers of production collection routes abandoned while leading imports. In addition, the agricultural organization qualifies political leaders unable to resolve the situation.
The Coordinator of Organizations of Farmers and Ranchers (COAG) considers that the picture which leaves the first year without production quotas in the dairy sector is dramatic and devastating.
– Prices ruin the farmer. In our country, the average price has risen from 0.36 euros / liter in 2014 to 0.28 in the last year, 20% less. In the first quarter of 2016 are closing contracts below 0.20 € / kg. The production costs of a liter of milk are placed on average 0.34 euros.
– Mass closure of farms. Spain lost each month 65 dairy farmers. The falling price of milk has forced to close down 1,544 producers in the last two years. Today in our country there are only 16,490 dairy farmers.
– Industries that “negotiate” based on blackmail. The elimination of quotas and the consequent liberalization of the dairy market has left farmers totally defenseless against abusive practices of industries. During the past year, there have been numerous announcements of industries that have abandoned their traditional collection routes. In others, they have used as a threat this argument to negotiate prices down with farmers.
Given this modus operandi, it is paradoxical that those provinces leading milk production in our country (and which has left the farmers gathered under the guise of surplus), lead imports of fluid milk and cream in 2015. Such and as reflected in the map on page 1, a Coruña (108,600 tons), Lugo (58,200 tons), Barcelona (41.080 t), Guipúzcoa (27.200t) and Burgos (12,560 t), are the first in the ranking importer.
– Dips in the field that are not transmitted to the same extent the consumer. Overall a drop of about 8 cents seen in two years at the price in origin, while the PVP has dropped only 4 cents on the shelves, according to the Ministry of Economy. Large retail chains are taking advantage of the crisis in home prices to expand their margins.
– Erratic and political incapable policies. The measures taken by the European Union and the Spanish Ministry of Agriculture have been totally ineffective to tackle the crisis before the “soft landing” that the great champions of a future without quotas held. In this context, COAG considered a brazenness and absolutely reprehensible that the Ministry of Agriculture itself considers that still left over 5,000 dairy farmers in our country, as said the Director General of Agricultural Productions Monday in microphones Cadena SER.
“We notify you by active and passive. Farmers would be the main victims in the dairy sector without quotas. Those politicians who decided to eliminating them and the organizations that seconded, are directly responsible for the negative consequences”, stressed Anabitarte Gaspar, head of the dairy sector of COAG
Given the seriousness of the situation, COAG requires, as a matter of urgency, the European Commission, the Council and the Parliament, go to the bottom of the problem and adopt a strong commitment on the implementation of new tools for regulating the milk market and control production at Community level to balance supply and demand and prices recover livestock. “It is unacceptable that the European dairy market adjustment is made at the expense of the disappearance of thousands of farms. We want to remain professional breeders, not employees of foreign retail chains and industries, “stressed Anabitarte.
COAG supports all processes of mobilization started in the main producing regions during the month of March (March 8 in Castilla y León), as the protests made during the last days in Galicia called by the Platform in defense of the dairy sector .
Source: COAG
