Galician farmers are accusing major dairy processors Lactalis, CAPSA, and Lence of discriminatory milk pricing, which disproportionately impacts small farms despite equal milk quality. The Sindicato Labrego Galego-Comisións Labregas has demanded an end to this practice and threatened a public campaign if their concerns are not addressed.
Farmers in Galicia have raised concerns over discriminatory milk pricing by major dairy processors Lactalis, CAPSA, and Lence, claiming that small farms are being unfairly penalized despite providing milk of the same quality as larger operations. The Sindicato Labrego Galego-Comisións Labregas (SLG), a leading farmers’ union in Galicia, has accused these companies of implementing pricing policies that disproportionately favor large-scale dairy farms, making it increasingly difficult for smaller producers to remain profitable.
According to data from the Consellería de Medio Rural, in January 2025, small farms producing less than 100,000 liters of milk per year received 41.38 euros per 100 liters, whereas larger farms delivering over 700,000 liters were paid 47.98 euros per 100 liters, creating a price disparity of 6.6 cents per liter. Contracts offered by these companies further amplify the gap.
Pricing Disparities Favor Large Producers
Lactalis does not offer any premium for farms producing less than 200,000 liters annually but provides bonuses of 5 cents per liter for those delivering between 200,000 and 275,000 liters and 5.5 cents per liter for farms exceeding 275,000 liters. CAPSA’s incentives start at 250,000 liters, with a maximum bonus of 5 cents per liter for producers exceeding 2 million liters. Lence (Río) applies bonuses starting at 1 cent for those producing between 240,000 and 600,000 liters, increasing up to 4 cents for farms delivering over 3.6 million liters annually.
These pricing policies result in a potential price difference of up to 12.1 cents per liter between small and large farms, leading to estimated losses exceeding $10,800 per year for farms producing around 90,000 liters.
Impact on Small Farmers and Rural Economy
In 2023, nearly half (48.6%) of Galician farms were classified as “small” by organizations such as the Fundación Juana de Vega. Farmers argue that the current pricing strategy promotes industrial concentration, pushing out small and medium-sized family-run farms that are vital to rural economic and environmental sustainability.
The SLG has formally requested that these dairy companies adjust their pricing policies to eliminate volume-based discrimination. If their demands are not met, the union has threatened to launch an informative campaign targeting commercial zones and consumer organizations to publicly highlight the negative impact of these practices on family farms.
