The study – which is part of the Ministry’s commitment to update the value chains of the different agri-food products – analyzes the income, costs, benefits or losses that are generated in the different links of the chain and that impact on the final price to the consumer, with the ultimate aim of contributing to market transparency and assessing the evolution followed by this chain over the years.
Long-lasting packaged liquid milk
And the main conclusions of this study are:
- The manufacture and commercialization of long-term packaged liquid milk (LELD) represents the main chapter of use of raw cow’s milk produced and collected in Spain, accounting for around 30% of the total. However, it is not the only internal use of said collected milk, so the value chain of this type of milk, despite its importance and interest, is not sufficiently representative of the value chain of the overall Spanish dairy sector. , by sharing the same raw cow’s milk collected with other uses (cheeses, acidified milk, butter, concentrated milk, etc.)
- Even within the same chapter of LELD milk, two very different formats are integrated: that of LELD milk with Manufacturer’s Brand (MDF) and that of LELD milk with Distribution Brand (MDD), so to accurately interpret your chain of value and being able to debate or reflect on the degree of balance and symmetry of this chain, it would be quite useful to know the incidence of both formats in its configuration.
- In the overall set of the LELD milk chain, it is observed, as a general characteristic, the existence of very low margins in all the links of the chain.
- Public aid and subsidies have not been taken into account in the configuration of the revenue and cost structures of the value chain.
- Given the low relevance of the foreign trade of LELD milk, and also in accordance with the express request of the sectoral partners themselves, neither imports nor exports of this product have been taken into account in the value chain.
- The LELD milk value chain now elaborated and referring to the period 2018 to 2020 does not present relevant structural variations with respect to the value chains elaborated by the Ministry in 2009 and 2012.
- The contrast analysis between information provided directly by sector operators and available official information has allowed to verify a high degree of approximation between one and another information, which allows guaranteeing the validity and reliability of the information provided by sector operators.
- Certain cost concepts have a high specific weight in the configuration of the RRP that a buyer pays for a liter of LELD milk that he purchases in a sales shelf, so that seven cost chapters – livestock feeding, health and reproduction, packaging and packaging, personnel, maintenance and repairs, depreciation and provisions and transportation— would already account for 87.7% of the RRP paid by the buyer, especially the costs of feeding the livestock, packaging and personnel.
- Primary production is where the most important costs of the global set of LELD milk costs are generated: production. industrialization and commercialization / distribution.
- The relationship between the RRP of a liter of LELD milk sold on the sales shelf and the price paid to the farmer ranges between 1.77 and 2.38.
The complete study can be consulted at this address.
Qualification
Study on the value chain of packaged milk
Description
The Ministry has published the study of the long-term packaged liquid milk value chain corresponding to the 2018 to 2020 campaigns, the objective of which is to contribute to the analysis of the price formation of such a basic and important product in the shopping basket. he buys it like milk.
Author
Gastronomy Journal