Spanish Dairy Industry Proposes 8 Bold Measures to Cut Costly Import Dependence

The Spanish dairy industry wants to cut the country's reliance on imported milk products. Spain's National Federation of Dairy Industries (FeNIL) presented a report in Madrid on 4 November proposing eight measures to strengthen domestic production and reduce import dependence, The DairyNews reported on 8 November.

The Scale of Spanish Dairy Imports

According to FeNIL's report, titled "X-ray of the Dairy Industry: a nutritional, territorial and economic engine", imports now cover more than 30% of Spain's dairy demand. In 2025, the country's dairy trade deficit reached 492,355 tonnes and €1.5 billion, the largest in the European Union.

Cheese is the biggest gap. Spain imported 434,844 tonnes of cheese in 2025 while exporting 131,696 tonnes, a deficit of more than 300,000 tonnes.

A Major Food Industry

Despite the deficit, the Spanish dairy sector is large. FeNIL says the industry had turnover of €15.89 billion in 2025, with 1,577 companies and 30,648 direct jobs, making it Spain's second-largest food industry. FeNIL president Javier Roza said that strengthening the dairy industry means strengthening Spain's food autonomy.

FeNIL's 8 Measures for Spanish Dairy

1. Support farms and collection: back viable farms, generational renewal and efficient milk collection.
2. Cut red tape: reduce bureaucracy, improve tax conditions and support rural investment.
3. Attract workers: improve rural housing and services to bring people into dairy jobs.
4. Modernise: increase automation, digitalisation and efficiency in farms and plants.
5. Promote consumption: encourage dairy consumption, especially among young people.
6. Boost exports: expand export support and open new markets.
7. Allow scale: lift farm-size limits where animal welfare and environmental rules are met, and encourage cooperation between farms.
8. Innovate with retail: create an innovation pact with retailers and step up research and development.

Why Spanish Dairy Lost Ground

Spain's milk production has been under pressure for years from rising costs, falling farm numbers and a shortage of young farmers. Many small family farms have closed, while strict limits on farm size and complex permitting have made expansion difficult. At the same time, consumer demand for cheese has grown, and much of it has been met by imports from France, Germany and the Netherlands.

FeNIL's proposals target each of these problems: supporting farms and generational renewal, easing regulation, attracting workers and allowing larger, well-managed farms.

The Debate Over Farm Size

The call to lift farm-size limits is likely to be the most controversial. Spain has seen public debate over large intensive livestock units, with concerns about water use, emissions and the impact on rural communities. FeNIL's proposal links any expansion to compliance with animal welfare and environmental rules, but environmental groups are likely to push back.

Lessons for India

India's situation is the reverse of Spain's. India is the world's largest milk producer and keeps dairy imports tightly restricted to protect millions of small farmers. Yet some of FeNIL's themes, such as attracting young people to dairying, reducing red tape, adopting technology and building export markets, are just as relevant to Indian dairy. Spain's experience shows how quickly a country can become import-dependent when farm numbers fall and processors cannot secure enough domestic milk. For context on global supply trends, see our report on the 2.2% global milk supply growth forecast.

The key takeaway: With imports covering over 30% of demand and a €1.5 billion trade deficit, the Spanish dairy industry is calling for eight measures to rebuild domestic supply and food autonomy.

Read the original report on The DairyNews.

Source: The DairyNews | DairyNews7x7