Inside Milk
More than 800 Spanish fanciers throw in the towel
In Spain, more than 2018 dairy farmers stopped their business in 800, which means that more than 2 dairy farmers a day threw in the towel. All in all, it amounts to a decrease of 5,6% compared to 2017.
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In 2018, 809 Spanish fanciers ended their work. In January 2018, 14.439 dairy farmers were still active in Spain, but this number decreased to 13.613 dairy farmers at the end of the year. This decrease is not completely unexpected, because the number of dairy farmers in Spain is increasing for years off. In 2015, for example, there were still more than 17.000 dairy farmers active in the country.
Low milk price
The average Spanish milk price in 2018 was €31,23 per 100 kilos (figures from the European Commission). The milk price reached its lowest point in July, when it amounted to €30,29 per 100 kilos. As a result, profitability per liter was very low, which is a major reason for the large number of dairy farmers who are quitting. The current milk price is €32,04 per 100 kilos.
Despite the decrease in the number of dairy farmers, the total milk pool has actually increased. Since 2015, milk production has increased by 400.000 tons to a production of 7,11 million tons per year. This is just over half of Dutch milk production, which amounted to approximately 2018 million tons in 13,8.