A UNION between Spain’s top milk producers is hoping to increase the price of milk and save the industry.
The National Market Commission approved the joint regulation on the Corporacion Alimentaria Penasanta and Leche Celta in order to raise milk prices, which plummeted following the abolishing of Europe’s quota system.
Both companies will now sell their milk under the same brand.
The EU milk quota system, which started in 1984, was scrapped in April in order to make the EU dairy business competitive against African and Asian markets.
Experts believe this change, which merges 50% of both companies, is an attempt to combat the market domination of the French company Lactalis.