Updated on Wednesday, August 25, 2021 – 12:41
The company owns 30% of the dairy market in Spain
Mercadona in the Mercat del NinotALBERTO DI LOLLI
The Union of Small Farmers and Ranchers (UPA) applauded the decision of Mercadona, which has approximately 30% of the dairy market share of Spain, of raising the price of milk, as reported by the agrarian organization in a statement.
The supermarket chain chaired by Juan Roig has announced that it will raise the price of milk a few cents on its shelves, so that from September it will not sell this product below the 0.60 cents per liter, according to Europa Press.
“Although it is a positive step, it will not save by itself the farms that already came from a precarious situation and that right now, with the brutal rise in production costs in recent months, are in a situation of technical bankruptcy” have explained from UPA.
The agrarian organization has pointed out that for Spain not to lose definitively the many dairy farms that are dying, this rise must be followed by the rest of the large commercial areas and the dairy industry, but they point out that it has to be combined with other advances.
On the other hand, the industry must pass on the announced rise to milk producers. In this sense, for UPA it is “intolerable” that some industries continue to violate the Food Chain Law, so it asks the Ministry of Agriculture, Fisheries and Food to ensure compliance and “apply a strong hand” to noncompliant through the AICA.
Regarding the distribution, the breeder and secretary of livestock of UPA, Romn Santalla, has been optimistic after the decision of Mercadona, which has approximately 30% of the share of the dairy market in Spain. “It is large enough to cause the rest of the distribution to drag in this direction,” he pointed out.
The agrarian organization considers that the Spanish industry should increase the price it pays to farmers and that it should rise according to the increase in production costs they bear, so this increase should equate Spain with the rest of Europe, where it is paid on average 0.36 cents per liter of milk and 0.39 cents per kilo of industrial products (powdered milk and butter).
“We are pressing at all levels so that everyone gets on their feet, so that the rises do not stay by the wayside and reach the producers and, of course, we continue to demand that those who without need bring milk from outside, such as Dia, leave to do so by damaging our primary sector “, Santalla has indicated.
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