The Portuguese Government recognized that the dairy sector deserves particular attention given the escalation in production prices and the drop in the value paid to producers. In response to the Lusitanian news agency (Lusa), the Ministry of Agriculture stated that support measures are being prepared to help the sector.
Portugal proposed to the European Commission, within the fifth reprogramming of the PEPAC, a new intervention co-funded by the EAFRD with a budget of 20 million euros, aimed at active farmers affected by the increase in fertilizer costs. Producers will benefit through silage maize areas, with support of 43 euros per hectare on irrigated surfaces and 18 euros per hectare on dryland surfaces. A financial emergency support measure is also being prepared, within the Agricultural Reserve, worth 9.4 million euros.
The drops in milk prices recorded since the beginning of the year will cost national producers around 72 million euros, according to an estimate by the Portuguese Milk Producers Association. The cooperatives associated in Lactogal communicated at the end of July a new drop of 1.5 cents per liter from August 1st, and in the Azores, Prolacto and Insulac responded with drops of two and 1.5 cents per liter.
The average price of milk purchased from individual producers fell to 0.447 euros per kilogram, the lowest value at least since the beginning of this year. Aprolep challenged the cooperatives to restore the price in September, which did not happen.
