The chains sink milk prices and unleash a war

The dairy industry continues without paying what was agreed per liter of milk to farmers. The drop in price of white brands aggravates the problem. / C7

Asaga denounces that these practices are aggravating the situation of farmers, who continue to produce below cost. These chains sell the liter below the level of 70 cents to gain market share

Silvia Fernandez

To skinny dog ​​everything is fleas. That is what is happening to
livestock sector of the islands, to which is added every day
new problems that aggravate their suffocation.

To the low prices paid by the industrial sector for milk to the 2,000 farmers who operate on the islands - a problem that remains unresolved - is now added the
drop in prices that several supermarket chains are applying «especially those of recent implantation».

A RISE THAT DOESN'T COME

  • May
    The industrial sector promised to raise to 0.60 euros what it paid farmers per liter of milk in order to at least cover its costs. It was paid at 0.48.

  • August
    In the 3 months that have passed the dairy industry has defaulted. It has raised four cents what it paid but still does not cover costs. Now it is paid at 0.52

  • Goal
    The amount of payment that is considered optimal is 0.63 euros. The price war that there is now in the Canary Islands with milk harms the rise.

According to complaint
the president of the Association of Farmers and Ranchers of the Canary Islands (Asaga Canarias Asaja)Ángela Delgado, these brands are lowering the prices of white brand milk with which they have entered the local market with the aim of gaining market share.

Delgado indicates that these chains are selling a liter of milk at 0.69 euros, an unsustainable price. "They have dropped below 70 cents, which was an unwritten limit, but if it is exceeded, it means not complying with the Food Chain Law because it implies selling below costs," says Delgado.
the price war that these chains have started "is generating a domino effect in the rest of the distribution," Delgado warns, since they all seek to lower costs so as not to lose customers. “It is a counterproductive war for the livestock sector that is facing a rise in everything,” says Delgado.

The dairy industry continues to fail to comply and pay more for milk

Asaga Canarias Asaja advocates that «
watch out for these types of practices that negatively affect the negotiations that have been carried out, both with the dairy industry and with supermarkets, to achieve an increase in the price of milk for Canarian farmers.

Farmers are drowning and the Government proposes raising aid for imported cheese and powdered milk

In this sense, the Association of Farmers and Ranchers of the Canary Islands (Asaga Canarias Asaja) warns that the gradual rise in prices of milk at origin agreed last May between the livestock sector, the dairy industry and large distribution, with the Government of the Canary Islands as an intermediary, in order to withstand the unstoppable rise in input prices, especially cereals for animal feed, the cost of which is still far from stabilising.

From May to August, only four cents have been raised for the producer (of dairy cattle) so it has gone from receiving 0.48 to 0.52 euros per liter. The remuneration continues to be insufficient and does not cover production costs, which currently stand at 0.63 euros per liter of milk produced, according to Asaga/Asaja in a press release.

The cheese industry turns its back on farmers and condemns them to disappear

Only four cents in three months compared to the 12 agreed

This difference of almost ten cents has to be assumed by the farmer, which translated into business terms means:
zero profitability.

Not even the aid that the insular and regional administrations have activated, although they have been well received, cover the extra costs of the sector. When the producers receive them, it only allows them to settle part of the debts, in addition to the fact that many can no longer access more amounts because they would exceed the limit established by law.

Given these circumstances, Asaga demands that the public administrations activate urgent and efficient measures for the coming months to avoid the
disappearance of the industry.

It also asks the dairy industry and distribution «
increased sensitivity with local livestock" and compliance with the price increase agreed in May. "This breach has and will have disastrous consequences for livestock because, if urgent measures are not taken, many farms will close," he says.

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