SPAIN: Milk farming groups merge
The co-operatives blamed a glut and higher grain prices
Three of Spain's largest groups of milk farmers have decided to merge to strengthen their position in the sector.
Prolec, Feplac and Ganaderos Unidos have decided to form a company that will account for 75% of the milk produced in Spain.
The new organisation, Organizacion de Productores de Leche, or OPL, will be up and running from 1 January.
A governing board made up of three members from each association will run OPL.
A statement issued yesterday (29 November) said the creation of OPL was needed due to a "glut" in the milk sector and to the "significant" increase in grain prices, which were both hitting farmers' profits.
Officials at Feplac did not return a request for further comment as just-food went to press.
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