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Past, present and future of parameters of milk payment in Galicia Santiago, June 2018 César Resch
Past, present and
future of parameters
of milk payment in Galicia
Santiago, June 2018
César Resch
Before 90´s
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Ligal was stablished in 1990
1976 only 50% of milk in Galicia was collected by industry
Before 90´s
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Volume
• Very weak quality control
• Alcohol test
• No refrigerated milk
• Antibiotic control
• Industrial self-control
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
Before 90´s
Milk means health
Boiled milk without vitamins
More calories even More calories even
than meat, eggs or
fish
What happened in 90´?
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Galician Milk Interprofessional Laboratory was
stablished in 1989
• The board 50% producers and 50% guarantees
equity in decisions
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Spain became an EU member in 1986
• Quota system started to be stablished for
dairy farmers in 1991/92 campaign
– First buyer policy
– No land required in quota transfer
What happened in 90´?
Captive market for dairy products
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Domestic market 8/9MT
• Dairy cow quota 6 MT
• Sheep and goat milk no quota
• 4MT milk were consumed as liquid
• Very strong position of Spanish industry
making liquid milk
Quota system condition farmers milk
quality
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Domestic market 8/9MT
• Dairy cow quota 6 MT
• Sheep and goat milk no quota
• 4MT milk were consumed as liquid
• Free market for quota and possible to transfer without land
• Quota in Galicia compromised farmers growth but it reduced dramatically competitors pressure on market
Milk quality under quota system in Galicia
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• More milk
• Less solids
• Genetics
• Milk price / concentrate ratio
• No land, no fibre
But things moved towards…
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Volatility came to stay in 2007
• Quota system abolition in 2015
We have a problem
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
Milk equivalent for 25 million people Distribution of population
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
Milk price evolution
Present and future of milk price bonus /
penalty system in Galicia
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Galicia exports more than 80% of its dairy
production
• Solids are crucial to export
• Cheese and industrial products more and
more relevant
• Some chance with PDO
Honesty is a good marketing strategy
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Biological
• Local
• Sustainable
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
Honesty is a good marketing strategy
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
Thank you very much for
your attention
