Past, present and future of parameters of milk payment in Galicia … · of milk payment in Galicia...

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