Spain’s sheep and goat milk industry is collapsing under unsustainable production costs, which far exceed sale prices. The sector has seen a sharp decline in production and a significant number of farm closures, prompting urgent calls for price regulation and government intervention. In March 2025 alone, hundreds of farms shut down, highlighting the urgent need for coordinated support and reforms to prevent the sector’s total collapse.
Spain’s sheep and goat milk industry is facing a severe crisis, as rising production costs continue to outpace sale prices, leading to an alarming wave of farm closures across the country. The Union of Unions of Farmers and Ranchers has sounded the alarm, citing data from the Ministry of Agriculture, Fisheries, and Food (MAPA) that show a continued and steep decline in milk deliveries through March 2025.
In March alone, sheep milk production dropped by 9% compared to the same period in 2024, while goat milk production fell by nearly 8%. The downward trend persists across the first quarter of 2025, with cumulative declines of 6% in sheep milk and 7% in goat milk. These figures reflect deeper structural issues in the sector, including a chronic lack of profitability and declining productivity.
Milk prices remain distressingly low, with goat milk selling at €0.969 per liter and sheep milk at €1.291 per liter. However, the cost of production ranges between €1.40 and €1.50 per liter—placing immense financial strain on farmers and rendering continued operations unsustainable.
As a result, the number of operational farms has plummeted. Since March 2025, 357 goat farms and 320 sheep farms have shut down, leaving only 3,673 active goat farms and 2,562 sheep farms across Spain. The closures are not only devastating rural economies but also pose a serious threat to the country’s food sovereignty and agricultural heritage.
In response, industry groups and agricultural unions are urging authorities to take immediate action. They are calling for the convening of the Sheep and Goat Milk Sectorial Board and demanding mandatory price negotiations based on real production costs. Additional proposals include strengthening the Food Chain Observatory and providing targeted aid to at-risk farms.
The collapse of this sector signals an urgent need for coordinated intervention to stabilize prices, support farmers, and preserve a crucial part of Spain’s agricultural economy.
