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Mercadona milk: inconsistencies with the price?

"Enough of the lies." This is the title of the paper which Agaprol -organization of dairy producers- has issued with a clear and recognized recipient: Mercadona. The reason? The farmers who provide milk to the industries -Lactiber and Kaiku- that work with the popular supermarket chain are not at all satisfied with the price at which said product is being sold, since, they assure in the letter, “they are below of our production costs ”. The primary sector is widespread throughout the country, and its workers are responsible for ensuring that the highest quality products reach our kitchens. What happens, then, with the Mercadona milk? What is the inconsistency behind your prices? Let's find out!

The livestock sector, the major affected

In the same way that it is important to publicize the benefits and advantages of a theme, it is even more essential to tell what, perhaps, is not so beautiful. It is the case of the Mercadona milk and the latent discontent of the livestock sector that, in reality, is one of the most affected by major crises that have occurred throughout history and that is suffering one right now. What is it that triggered this outrage? In short, that the company led by Juan Roig lower the price of milk at source more than necessary to later lower it even more for the public.

Mercadona milk
Mercadona's milk price, in question | Source: info.mercadona.es

The result for Mercadona? A major sale and domain in the sector. The consequence for ranchers? A sale that stands below production costs and that only makes the survival of these workers more difficult. "It is enough to look at the statistics of the Ministry in which it is confirmed that every year there are almost 1000 farmers who are forced to abandon their dairy farms," ​​they argue in the letter.

"Enough of the lies"

It is true that Agaprol is happy about the good performance of the company -its profits have increased to 727 million during the last year, approximately 17% more than the previous year-, as well as that “consumers have been able to enjoy a Quality service”. However, there is something that they are not willing to tolerate, and that is that the prices established by the food chain are so low that they, the farmers, cannot even cover the costs of production.

Let's put ourselves in situation: Mercadona dominates 30% of the liquid milk trade in Spain, working with six large companies that work exclusively for the chain. It is these companies that determine the price paid to farmers, after Mercadona decides how much it is going to pay them. Faced with this situation, what options do farmers have? Accept and endure. But the problem does not end there. "For more derision, you have to sign a clause in the contract that says that with that price we cover our production costs, knowing that in the vast majority of cases it is a lie”Criticizes Agaprol in his letter.

 

The point is that Mercadona justifies these actions with "better logistics, optimization of resources or more efficient processes so that the consumer pays less". But the reality, told by the farmers themselves, is that “they simply pay their suppliers below the cost price”. Tired of this attitude, they ask for a step forward by the firm and that "Enough of lies".

A look to the future

The seriousness of this situation is more serious than one might think at first: the possible disappearance of the livestock sector in Spain. In fact, from Agaprol they warn him: “When there are no farmers left in Spain because you have decided not to pay a price that guarantees your profitability, your customers will continue to drink milk and you will not have any no choice but to bring it more expensive from outside our country".

Mercadona's success is undeniable; But as the ranchers who have come together to denounce this situation say, "that does not mean that their way of working is." The organization speaks on behalf of all those workers in the sector who do not have the freedom to express their outrage openly. ¿Mercadona will react to this open protest and reconsider the conditions under which it negotiates with the farmers the milk?

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