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Past, present and
future of parameters
of milk payment in Galicia
Santiago, June 2018
César Resch
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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
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Before 90´s
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Volume
• Very weak quality control
• Alcohol test
• No refrigerated milk
• Antibiotic control
• Industrial self-control
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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
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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
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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´?
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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
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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
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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
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But things moved towards…
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Volatility came to stay in 2007
• Quota system abolition in 2015
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We have a problem
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
Milk equivalent for 25 million people Distribution of population
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CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
Milk price evolution
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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
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Honesty is a good marketing strategy
CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
• Biological
• Local
• Sustainable
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CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
Honesty is a good marketing strategy
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CENTRO DE INVESTIGACIÓNS AGRARIAS DE MABEGONDO
Thank you very much for
your attention