The Government extends the deadline to find a solution and save Agama

PalmThe Government set December 31 as the deadline to find a solution for the General Agrarian Association of Mallorca (Agama), that will stop buying milk from producers in Mallorca in 2026However, sources within the Balearic Islands government have explained to ARA Baleares that they have extended the deadline for finding a solution for the dairy plant because "it cannot be done by the end of the year." Even so, they regretted that the original deadline had not been met and justified the delay by saying that the procedures "are slow." The government has not yet decided on a new deadline to definitively clarify Agama's future, although it is expected to be at the beginning of next year. Otherwise, "there will be no room to maneuver or reverse the situation," government sources acknowledged.

In recent years, the company's sales have continued to decline, and in 2025 the drop is 20% compared to previous years, according to figures from Damm. This is mainly due "to the strong price pressure exerted by store brands and milk brands from outside the island that dominate supermarket shelves," as sources from the brewing company explained to ARA Baleares. Therefore, with the aim of "guaranteeing the viability and competitiveness of the business, Agama finds it necessary to reduce its purchases of raw milk from local farms," they added. But there will be no further reduction because in 2026, the company will stop buying milk from the three dairies that, at this point, are still supplying it.

The workers Employees of the company have repeatedly stated their fear that the company will close. Sources close to Agama say that their job security and the future of the company are still uncertain. Agama's intention to cut back on milk purchases also affects producers in Mallorca, who will have to assess what to do with their farms and facilities.

This is not the first time Agama has reduced the liters of milk he buys to producers in Mallorca. From 2016 onwards, sales declined due to the gradual entry of competing brands, resulting in a growing surplus that the company was unable to sell. Agama reduced its milk purchases from local producers by 10%, and subsequently implemented a 40% reduction. According to company executives, the company had accumulated "losses of nearly six million euros" and had "a surplus of almost 4.5 million liters of milk with no outlet in the Balearic Islands."

In recent years, the company's sales have continued to decline, with a projected 20% drop in 2025, according to Damm, due to "the strong price pressure from private label brands and milk from outside the islands, which dominate supermarket shelves," company sources explain. With the aim of "guaranteeing the viability and competitiveness of the business, Agama needs to reduce its purchases of raw milk from local farms," they add. In 2026, the company will stop buying milk from the three dairy farms it still supplies today.