The Department of Agriculture, Livestock, Rural Environment and Environmental Policy has calculated at 49.2 cents per liter—equivalent to 47.79 euros per every hundred kilos of milk corrected for solids (SCM)—the average “reference” economic cost of producing cow’s milk in Castilla y León.
Thus, the head of the department, Joaquín Antonio Pino, explained in Palencia during the presentation of the “Study on the costs of cow’s milk in Castilla y León,” where he specified that, of those 47.79 euros, 28.06 are allocated to feeding the livestock, which amounts to around 58.7 percent of the total cost, while paid labor and that of the holder himself accounts for another 20 percent.
The study reflects a notable increase in the price of feed rations throughout 2026, rising from 240.14 euros per ton in weeks one to 17 of the year to 268.14 euros per ton between weeks 40 and 44. This implies a 11.66 percent rise and places the cost 14.45 percent above that recorded in the same period in 2025.
At the same time, there has been a decline in the price received by farmers. According to the data declared in Infolac, the amount paid per liter has fallen from 55.7 cents in January to 48.7 cents in September, which implies a reduction of 12.6 percent since the beginning of the year and significantly tightens the profitability margins of farms.
The report analyzes different types of farm depending on parameters such as size, production per cow, the available area, the degree of self-sufficiency in forage production, or the purchase of feed, and the labor model. For this reason, the 47.79 euros are presented as an “economic reference” for the entire Community and not as a “uniform” cost applicable to all dairy farms.
“Some data,” Pino stressed, “that generate ‘great concern’ and that support the publication of this technical report because, in his words, what is intended is to ‘prevent and alert’ about the ‘adjustment of margins.’ ‘Dairy cattle farms are fundamental for maintaining the country’s food sovereignty and, therefore, what this Department wants is to strengthen the sector and expand it, not that it goes less. And for that, it is necessary to have profitability,’ he reiterated.”
The adviser has added that this analysis provides an “objective” tool to guide policies aimed at supporting the continuity of viable farms. This work is complemented by monitoring the food chain and business relationships, as well as by initiatives to simplify administrative procedures, encourage modernization, and increase the productive efficiency of the dairy sector.
"The Department will be vigilant so that the Food Chain Law is complied with, with the controls, with the inspections, and those who are not complying with the law will be sanctioned with all firmness," he concluded.