Spanish dairy exports increase, number of companies decreases

The abolition of the quota initially led to an increase in production, which has had a positive effect on the processing industry and Spanish dairy exports. For example, the country's cheese exports increased by 2011% between 2016 and 62; from 49.779 tons to 81.120 tons. The export of cream and yoghurt also showed an increase.

Fewer and fewer companies
However, the abolition of the quota has also had a negative effect on Spanish dairy farming. The number of dairy farms fell by 2015% between 2018 and 15; from 17.090 to 14.424. Agro-messages Abroad reports that this is a decrease of 2,5 companies per day.

This is mainly due to the traditional structure of the dairy sector in the country. This is dominated by very small companies, which are hardly profitable. In addition, the sector is faced with an aging population generational replacement.

Prices are lower
The Spanish milk price also did not immediately respond positively to the abolition of the quota. In 2014 the price was €0,36 per liter, but today it is approximately €0,33 per liter. This means that the price is currently below the European average of €0,36 per liter.

In addition, the number of adult animals of productive age has also remained virtually the same over the past 3 years (830.000). Milk production in the country increased by 5% in the same period, reaching 2017 million tons in 7.

Production Relocation
It was expected that the abolition would lead to production relocation, but that did not happen. Galicia still has 55% of dairy farms, followed by Asturias (12,6%) and Cantabria (8,5%). Cataluña and Andalucía follow with 3,5% of companies each.