The future of the Extremaduran cheese factory

Traditionally, livestock farms have been adapting their production to market price trends, so that their production increased when milk prices rose and when the price fell, production fell. During recent years this situation is changing and the increase in milk prices has not been combined with an increase in milk production on farms. From the end of 2021 to the end of 2023, raw material prices have risen by 30%, and production has suffered a drop of more than 10%. This situation of instability cannot be transferred to the price market, and has caused uncertainty in the cheese industry, with periods of milk shortages and abusive prices. The formulas that have been used to solve this situation have been twofold:

  • The negotiation of contracts with raw material suppliers to guarantee a fair price in the medium term, in exchange for guaranteeing milk deliveries and favoring increased production in the coming years.
  • On the other hand, cheese companies must optimize their processes to adapt their products to the new demands of consumers, who are increasingly concerned about quality, food safety, the sustainability of industries, and the consumption of artisanal and kilometer zero products.

Quesos del Casar, true to its business philosophy of caring for and guaranteeing the quality of its cheeses, has made the necessary investments to adapt to these new requirements, and has signed agreements with its milk suppliers to guarantee the economic and productive stability of the farms in Extremadura from which it is supplied on a daily basis. The future of the cheese industry in our region depends on these agreements. We must commit to maintaining Extremadura’s milk production to guarantee a successful future for our industries. This close relationship between producers and manufacturers will be what will set the right conditions to guarantee the future of both farms and dairies in Extremadura. Mario Blasco Rey Director of Quesos del Casar

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