The Government has recognised that the milk sector deserves particular attention in the face of the rise in production prices and the fall in the value paid to producers, and has said that they are being prepared to support that they can benefit them.
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07/09/2026
by
Lusa
“ Portugal proposed to the European Commission, within the framework of the fifth reprogramming of the PEPAC [Strategic Plan of the Common Agricultural Policy] a new intervention, co-financed by the EAFRD [European Agricultural Fund for Rural Development], with an allocation of EUR 20 million for active farmers affected by the increase in fertilizer costs,” the Ministry of Agriculture said in response to Lusa.
According to the Government, producers will benefit from this intervention through the areas of silage maize, with support of EUR 43 per hectare in the areas of irrigation and EUR 18 per hectare in the areas of drought.
The proposal is under evaluation by the European Commission.
The reprogramming of the PEPAC also includes, as indicated, an increase of EUR 162 million in direct payment appropriations, an increase of 11%.
The ministry led by José Manuel Fernandes also said that emergency financial support under the Agricultural Reserve is being prepared, worth €9.4 million, which will also benefit milk producers.
“ The situation in the sector deserves particular attention, especially in view of the reduction in milk prices and the increase in production costs, which pressure the sustainability of the activity, especially of small farms”, he said.
According to the Government, for example, basic income support, with an indicative value of EUR 107.96 per hectare, additional redistributive support of EUR 120 per hectare, and payment for cow's milk, with an indicative value of EUR 113 per animal, is in place.
Outside the PEPAC, milk producers can also benefit from extraordinary support to the agricultural sector for a total of EUR 20 million, including aid of EUR 12 per dairy cow.
The drop in the price of milk recorded from the beginning of the year and until December will cost national producers around EUR 72 million, according to an estimate from Aprolep, sent to Lusa.
The Association of Milk Producers of Portugal (Aprolep) said that the associated cooperatives in Lactogal reported at the end of July a further 1.5 cents per litre drop in the price to the producer from 1 August, throughout the continental territory.
On the island of S. Miguel, in the Azores, “Prolacto and Insulac have already responded with decreases of two and 1.5 cents per litre, justifying the decline with the situation of the markets at national and international level”.
“ This decrease, between August and December, represents less than EUR 12 million for producers, to be added to the EUR 60 million that already represents, throughout the year 2026, the decline of three cents per litre compared to 2025”, estimated the direction of Aprolep in response to Lusa.
In view of the cooperatives' decision to lower the value paid to producers, Aprolep challenged them to restore the value in September, which was not the case.
The average price of milk purchased from individual producers fell to EUR 0.447 per kilogram (kg), the lowest value at least since the beginning of this year, according to data from the Planning Office, Policies and General Administration (GPP).
Consumers are paying less than two cents for a litre of half-fat milk, which, on average, reached EUR 0.89 in July, revealed the Price Observatory data.
On 26 January, a litre of milk cost about EUR 0.91 plus two cents more than the average price in July.
Lusa contacted Lactogal last week, but she got no response.