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30.07.2009

Spain: MANIFEST AGAINST THE NEW CONTRACT BETWEEN FARMERS’ AND INDUSTRY

Last 20th of July, the interprofessional dairy association (which is formed by unions, industry, administration and distribution) made a decision: they signed a document, which is a contract between farmer and industry. In that contract it is very clear that Spanish farmer will receive a medium milk price 0,30-0,31 euros/litre, during the next six months (until December). The document explains clearly that the reference market, in order to fix a milk price, will be the French dairy market, so Spanish industry will increase the French medium milk price 3 cents, that means the final medium milk price will be 0,30-031 euros/litre. PROLEC and the independent milk farmers’ organizations are against that agreement, because production costs are around 0,37 euros/litre, so that price is not a covering cost price. The industry also does not rely on recommandations in practical life. Anyway, if industry takes French market that is because prices are lower than Spanish prices. That’s why PROLEC made a manifest against that contract and that milk price and that manifest was delivered to the Spanish agricultural minister, in order to find a solution to the milk prices crisis.


Now, the whole dairy sector is divided. Some unions are on the side of the contract and some are not. PROLEC is against it, because the Spanish producer is under the industry pressure, as usually and because of the reference market.

Manifest of PROLEC and other Spanish organisations

 


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