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.