Regional Government launches new support package for restructuring dairy sector to stabilise markets and boost income - Communication

Secretaria Regional da Agricultura e Alimentação

The Government of the Azores, through the Regional Secretariat for Agriculture and Food, has approved a new ordinance establishing the allocation of 3,000 individual rights for the Suckler Cow Premium (under the POSEI programme).

The measure aims to support the transition from dairy farming to beef cattle farming on the islands of São Miguel, Terceira and Graciosa, promoting the sustainability of the sector and rebalancing the regional market.   

According to the Regional Secretary for Agriculture and Food, António Ventura, the opening of this application period represents an “opportunity for conversion for producers who, for various social and economic reasons – primarily related to advanced age and health problems – wish to continue to derive an income from livestock farming.”

The government official highlighted the macroeconomic impact of this decision, explaining that the transition “contributes to a reduction in production volumes on the islands of São Miguel, Terceira and Graciosa, stabilising milk production and, as such, securing better prices for producers.”

At the same time, he considered the transition to meat production a safe and strategic move.

António Ventura pointed out that beef production in Mainland Portugal “remains 45% short of consumption needs.”

This situation highlights the significant growth potential in Azorean dairy products, contributing to an increase in national food self-sufficiency.

The measure now implemented also fulfils a commitment made between the Azorean Governmend and the Azores Agricultural Federation, announced during the 21st Micaelense Holstein-Friesian Breed Competition, aligning public policies with the sector’s new economic and environmental requirements.

Producers wishing to benefit from this package must be tax-registered in the islands covered by this measure and must have made milk deliveries in 2025 and 2026.

Farms subject to sanitary sequestration are also eligible, whilst beneficiaries who have already been granted rights under previous schemes are excluded, except in specific situations duly provided for.

As a structural condition, the support requires effective restructuring, requiring the slaughter of at least 95% of eligible female cattle by December 31, 2027, as well as administrative compliance with the cancellation of the agricultural holding number (SERCLA).

With a view to ensuring the stability of the process, the rights now granted are non-transferable until December 31, 2032.

The total allocation of 3,000 rights will be distributed in accordance with the production capacity of each island: 2,173.1 rights for São Miguel; 795.5 for Terceira; and 31.5 for Graciosa.

Should demand exceed supply, the Regional Directorate for Rural Development will apply priority criteria, favouring, for example, farms with stricter health standards, lower production volumes and demographic factors.

The application period runs from June 1 to 30. Interested producers must submit the form via the official platform or seek assistance from the Agrarian Development Services on their respective island.

For further information, interested producers should contact the Regional Directorate for Rural Development.